The use of the federal budget to achieve macroeconomic objectives of full employment and sustainable economic growth is
A) called fiscal policy
B) called monetary policy
C) done only when there is a budget surplus
D) called government GDP policy
E) done only when there is a budget deficit

Question

Quizplus · Accepted Answer

The use of the federal budget to achieve macroeconomic objectives of full employment and sustainable economic growth is called fiscal policy. This involves the government adjusting its spending and taxation policies to influence economic activity and steer the economy towards these objectives. This can involve both budget deficits and surpluses, depending on the specific circumstances and goals. Monetary policy, on the other hand, involves the actions of the central bank to control the money supply and interest rates, and is separate from fiscal policy.

The Use of the Federal Budget to Achieve Macroeconomic Objectives