What is the goal of fiscal policy?
A)To increase economic fluctuations and have the GNP grow close to full employment
B)To increase economic fluctuations and have the GDP grow close to the GNP
C)To lessen economic fluctuations and have the GDP grow close to the GNP
D)To lessen economic fluctuations and have the economy grow close to full employment
E)None of the above

Question

Quizplus · Accepted Answer

The goal of fiscal policy is to lessen economic fluctuations and have the economy grow close to full employment. This is achieved through government spending and taxation policies that aim to stabilize the economy and promote growth. The other answer choices either have incorrect goals or are nonsensical.

What Is the Goal of Fiscal Policy