Government policies that use taxes and government spending in an attempt to stabilize the economy are known as

Question

Quizplus · Accepted Answer

Fiscal policy uses government spending and taxation to stabilize the economy. It is designed to curb inflation, boost economic growth, and reduce unemployment during an economic downturn. The government can use either expansionary fiscal policy (lower taxes, increase spending) or contractionary fiscal policy (increase taxes, reduce spending) depending on the state of the economy.

Government Policies That Use Taxes and Government Spending in an Attempt