A decision by the Department of Finance to reduce spending in order to balance the government's budget is an example of _________ policy.

Question

Quizplus · Accepted Answer

Fiscal policy involves decisions made by the government regarding spending and taxation in order to achieve specific economic objectives, such as balancing the budget. Therefore, the decision to reduce spending in order to balance the budget is an example of fiscal policy. Aggregation, monetary, structural, and productivity policies are not related to this particular decision.

A Decision by the Department of Finance to Reduce Spending