Senator Gong Lee is alarmed at the state of the economy. Unemployment is high and GDP is low. Senator Lee has called for Congress to take action to increase government spending and cut taxes in order to stimulate the economy. The actions called for by Senator Lee are examples of:

Question

Quizplus · Accepted Answer

Senator Lee's call to increase government spending and cut taxes is an example of fiscal policy, which refers to the use of government spending and taxation to influence the economy. Monetary policy, on the other hand, refers to the actions taken by a central bank to influence the supply of money and credit in the economy. Discretionary income policy and social investment policy are not relevant to the actions proposed by Senator Lee.

Senator Gong Lee Is Alarmed at the State of the Economy