According to most economists, what does fiscal policy affect?
A) only aggregate demand and not aggregate supply
B) mostly aggregate demand
C) mostly aggregate supply
D) only aggregate supply and not aggregate demand

Question

Quizplus · Accepted Answer

Fiscal policy primarily affects aggregate demand through changes in government spending and taxation. However, it can also have some indirect impacts on aggregate supply through changes in incentives for businesses and individuals to invest and produce.

According to Most Economists, What Does Fiscal Policy Affect