Member of Parliament Bud Smythe is alarmed at the state of the economy.Unemployment is high and GDP is low.MP Smythe has called for parliament to take decisive action to increase its expenditures and cut taxes in order to stimulate the economy.The actions called for by MP Smythe are examples of the government's use of:

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of government spending and taxation to influence the economy. MP Smythe's call for parliament to increase expenditures and cut taxes is an example of fiscal policy. Monetary policy involves the regulation of the money supply and interest rates, incomes policy refers to efforts to regulate wage and salary levels, and social investment policy focuses on government spending on social programs and infrastructure.

Member of Parliament Bud Smythe Is Alarmed at the State