The concept of fiscal policy refers to the:
A)running of a deficit or surplus to affect the level of output in the economy.
B)changing of interest rates to affect the level of output in the economy.
C)management of exchange rates to affect the trade deficit in the economy.
D)setting of wage policies by institutions to affect spending in the economy.

Question

Quizplus · Accepted Answer

Fiscal policy involves government decisions on taxation and spending to influence the economy. Running a deficit (spending more than the revenue) or a surplus (spending less than the revenue) can stimulate or slow down economic activity, respectively, affecting the level of output in the economy.

The Concept of Fiscal Policy Refers to The