An example of fiscal policy occurs when the government makes Social Security payments.
Fiscal policy is the use of government taxes and spending,including transfer payments such as Social Security,to alter macroeconomic outcomes.

Question

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Social Security payments are a form of transfer payments made by the government, which is a tool for fiscal policy. These payments affect macroeconomic outcomes by altering the disposable income and consumption behavior of individuals, which can lead to changes in aggregate demand and economic growth.

An Example of Fiscal Policy Occurs When the Government Makes