If the government uses taxation and government spending to shift aggregate demand or supply it is called what?
A) Monetary policy
B) Ecumenical policy
C) Fiscal policy
D) Normative policy

Question

Quizplus · Accepted Answer

Fiscal policy involves the use of government spending and taxation to influence the economy, specifically to shift aggregate demand or supply. This is distinct from monetary policy, which involves managing the money supply and interest rates.

If the Government Uses Taxation and Government Spending to Shift