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

The actions called for by MP Smythe, i.e. increasing expenditures and cutting taxes, are examples of fiscal policy. Fiscal policy refers to the actions taken by the government to affect the economy through changes in government spending and taxation.

Member of Parliament Bud Smythe Is Alarmed at the State