Changes in government spending and tax revenues for the purpose of achieving a full-employment and non-inflationary level of domestic output are called

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Fiscal policy refers to the government's use of changes in spending and taxation to influence the level of output and employment in the economy. Its goal is to achieve full employment and price stability. Industrial policy refers to government intervention to promote specific industries or businesses. Monetary policy refers to the use of changes in interest rates and the money supply to affect macroeconomic variables. Trade policy refers to government policies that regulate or affect international trade. Supply-side economics, sometimes referred to as trickle-down economics, focuses on promoting economic growth by reducing taxes and regulations on businesses.

Changes in Government Spending and Tax Revenues for the Purpose