The use of government expenditures and taxes to influence the level of economic activity is
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Fiscal policy refers to the use of government spending and taxation to influence the level of economic activity. It is a tool used by governments to help stabilize the economy and achieve certain macroeconomic goals, such as controlling inflation, reducing unemployment, and promoting economic growth. Deficit management policy and debt management policy are more specific types of fiscal policy that focus on managing government deficits and debt levels, respectively. Financial policy is a broader term that encompasses both monetary and fiscal policy.

The Use of Government Expenditures and Taxes to Influence the Level