The country of Ukanturk has been facing an economic downturn for two consecutive years. To revive the financial condition of the country, its government tries to influence the economy through taxation and spending decisions. These measures are designed to encourage growth and increase employment. In this scenario, the government of Ukanturk is implementing its _____.

Question

Quizplus · Accepted Answer

The government's efforts to influence the economy through taxation and spending decisions indicate the implementation of fiscal policy. Monetary policy involves controlling the money supply and interest rates to affect economic growth and inflation, which is not mentioned in the scenario. Investment policy refers to the government's strategies to attract foreign investments and support domestic businesses, which is not explicitly mentioned in the scenario. Supply-side policy aims at improving the productivity and efficiency of the economy through incentives for businesses and individuals, which is not mentioned in the scenario.

The Country of Ukanturk Has Been Facing an Economic Downturn