Government tax and expenditure policies that affect real GDP are called

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Fiscal policy refers to the use of government spending and taxation to influence the economy. It can be either automatic (changes in taxes and spending that occur automatically without explicit government action, such as during a recession) or discretionary (intentional changes in government policy to influence economic growth or stability). Tax and expenditure policies specifically aimed at affecting real GDP fall under the umbrella of discretionary fiscal policy. Automatic fiscal policy would refer to changes in taxes or spending that occur automatically in response to changes in the economy, such as an increase in government transfer payments during a recession. Supply-side policy refers to policies aimed at improving the productive capacity of the economy, such as cutting taxes on businesses to encourage investment in capital goods.

Government Tax and Expenditure Policies That Affect Real GDP Are