When a government changes its fiscal policy,what is it doing?

Question

Quizplus · Accepted Answer

When a government changes its fiscal policy, it is changing government spending and/or tax rates to achieve some objective. Fiscal policy is a set of economic policies pursued by a government to influence the economy through government spending and taxation. The objective may be to boost economic growth, stabilize the economy, or reduce inflation. By changing government spending and/or tax rates, the government can affect the level of aggregate demand, the distribution of income, and the efficiency of resource allocation.

When a Government Changes Its Fiscal Policy,what Is It Doing