Fiscal policy refers to the
A)deliberate changes in government spending and taxes to stabilize domestic output, employment, and the price level.
B)deliberate changes in government spending and taxes to achieve greater equality in the distribution of income.
C)altering of the interest rate to change aggregate demand.
D)fact that equal increases in government spending and taxation will be contractionary.

Question

Quizplus · Accepted Answer

Fiscal policy involves government adjustments in spending and taxation to influence the economy, specifically targeting domestic output, employment, and price levels.

Fiscal Policy Refers to the