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

Question

Quizplus · Accepted Answer

Fiscal policy involves changes in government spending and taxation, which can influence aggregate demand and ultimately affect economic growth and stability. The money supply (A) is typically controlled by the central bank through monetary policy. The treasury (C) is responsible for managing the government's finances, but it does not directly affect aggregate demand. The energy department (D) is focused on energy policy and does not have a direct role in fiscal policy.

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