Most economists agree that the focus of fiscal policy is to
A)plan the economy.
B)balance aggregate demand and aggregate supply.
C)balance the federal budget.
D)balance environmental needs and resources.

Question

Quizplus · Accepted Answer

The primary focus of fiscal policy is to balance aggregate demand and aggregate supply in order to promote economic stability and growth. This includes adjusting government spending and taxation policies to either stimulate or cool down the economy. Planning the economy (choice A) can involve various types of economic policies, not just fiscal policy. Balancing the federal budget (choice C) may be a goal of fiscal policy, but it is not the primary focus. Balancing environmental needs and resources (choice D) may be important, but it is not directly related to fiscal policy.

Most Economists Agree That the Focus of Fiscal Policy Is