Fiscal policy involves manipulating ________.

Question

Quizplus · Accepted Answer

Fiscal policy involves using government spending and taxes to influence the overall economy. By increasing or decreasing government spending and/or taxes, fiscal policy can affect the level of economic activity, inflation, and employment. The other choices, such as monetary policy (manipulating the supply of money) and federal subsidies and minimum wage values, do impact the economy, but are not considered part of fiscal policy.

Fiscal Policy Involves Manipulating ________