Fiscal policy affects aggregate demand.

Name: Fiscal policy affects aggregate demand.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Fiscal policy refers to government actions, such as changes in taxation and government spending, that affect the overall level of economic activity. By increasing or decreasing government spending or changing the tax rates, fiscal policy can directly impact the level of aggregate demand in an economy.

Fiscal Policy Affects Aggregate Demand