_____ policy involves adjusting government spending and tax policies to move the economy toward full employment, economic growth, and low inflation.

Question

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The policy described is a discretionary fiscal policy, which involves the deliberate adjustment of government spending and tax policies to achieve specific economic goals. Choice A, goal-oriented fiscal policy, is not a commonly used term. Choice B, classical economic policy, refers to the free-market approach advocated by economists such as Adam Smith and is not specific to achieving full employment, economic growth, and low inflation. Choice C, monetary policy, involves the manipulation of interest rates and the money supply by a central bank but does not involve government spending and taxes.

_____ Policy Involves Adjusting Government Spending and Tax Policies to Move