The government's fiscal policy is its plan to regulate aggregate demand in an economy by manipulating:

Question

Quizplus · Accepted Answer

The government's fiscal policy is concerned with regulating aggregate demand in an economy through changes in government spending and taxation. The manipulation of the money supply is a monetary policy tool, which is typically the responsibility of central banks rather than governments. The treasury is a government department responsible for managing the country's finances, but it is not directly involved in fiscal policy decision-making. The unemployment rate is an important macroeconomic indicator, but it is not a tool for regulating aggregate demand.

The Government's Fiscal Policy Is Its Plan to Regulate Aggregate