Fiscal policy involves the federal government's efforts to stabilize the economy by increasing or decreasing taxes and/or government spending.

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Fiscal policy is a tool used by the government to influence economic conditions through changes in taxes and government spending. It is a way to stabilize the economy and achieve desirable levels of growth, employment, and inflation. By increasing or decreasing taxes, the government can affect the amount of money that individuals and businesses have available to spend. Likewise, by changing government spending, the government can affect the overall level of demand in the economy, which can influence economic growth and unemployment.

Fiscal Policy Involves the Federal Government's Efforts to Stabilize the Economy