Fiscal policy refers to the
A)government's attempts to maintain a vertical AS curve so as to stabilize output.
B)government's use of spending and taxing policies to influence equilibrium real GDP.
C)government's use of trade-related policy tools to influence the net export function,thereby influencing GDP.
D)business sector's influence on investment and GDP.
E)households' attempts to change saving to encourage growth.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the government's use of spending and taxing policies to influence equilibrium real GDP. It involves the government's attempts to use its budget to stabilize the economy by influencing the level of aggregate demand.

Fiscal Policy Refers to the