Fiscal policy changes in government spending and taxes primarily target the aggregate supply curve.
The federal government's tax and spending powers give it a great deal of influence over aggregate demand.The government can alter aggregate demand by purchasing more or fewer goods and services,raising or lowering taxes,and changing the level of income transfers.These tools primarily impact the aggregate demand,not the aggregate supply.

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Fiscal policy changes in government spending and taxes primarily target aggregate demand, not the aggregate supply curve. The government can influence aggregate demand through its tax and spending powers, but this does not typically impact the aggregate supply curve.

Fiscal Policy Changes in Government Spending and Taxes Primarily Target