Fiscal policy is the use of the government's tax and spending powers to shift the aggregate demand curve.

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Fiscal policy involves the government's actions to impact the overall economy. This can include changes to taxes, government spending, and other policies aimed at influencing the level of demand in the broader economy. By adjusting these policies, the government can shift the aggregate demand curve - a representation of the total level of demand for goods and services across all sectors of the economy. This can be used as a tool for promoting economic growth, stabilizing inflation, and other key economic goals.

Fiscal Policy Is the Use of the Government's Tax and Spending