A professor of economics at a prominent university recently urged government policy makers to cut taxes and increase government spending in order to pull the economy out of its current downturn. The policy measures called for by the professor are examples of fiscal policy.

Question

Quizplus · Accepted Answer

Fiscal policy refers to government's use of taxation and expenditure policies to influence the economy. Cutting taxes and increasing government spending are both examples of fiscal policy measures.

A Professor of Economics at a Prominent University Recently Urged