Tax policy conducted for the purpose of achieving full employment, price stability, or economic growth is an example of

Question

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Tax policy conducted with the objective of achieving full employment, price stability, or economic growth falls under the domain of discretionary fiscal policy. Discretionary fiscal policy refers to the deliberate changes made in the taxation and government spending with the intent to stabilize the economy. Monetary policy pertains to the regulation of the money supply and interest rates by the central bank. Interest-rate policy and exchange-rate policy are subsets of monetary policy focusing on specific aspects of regulating the economy.

Tax Policy Conducted for the Purpose of Achieving Full Employment