The government's running of a deficit or a surplus with the objective of affecting the level of output in the economy is called:
A)public finance.
B)fiscal policy.
C)the Ricardian equivalence.
D)sound finance.

Question

Quizplus · Accepted Answer

Fiscal policy involves the government's use of its budget through spending and taxation to influence the overall level of economic activity, including efforts to adjust the economy's output.

The Government's Running of a Deficit or a Surplus with the Objective