Fiscal policy is defined as
A) the design of a tax system to transfer income from large corporations to the poor.
B) the use of Congressional power to pursue social and political goals.
C) the discretionary changing of government expenditures or taxes to achieve macroeconomic goals.
D) the use of the taxing power of the government to redistribute wealth in a socially acceptable manner.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the deliberate manipulation of government spending and taxation in order to achieve specific economic goals, such as promoting economic growth, reducing unemployment or controlling inflation. This involves making discretionary changes to government expenditures and/or taxes in order to influence the overall level of aggregate demand in the economy. The other options (A, B, and D) do not accurately reflect the definition of fiscal policy.

Fiscal Policy Is Defined as