Government spending conducted for the purpose of achieving full employment or price stability is an example of

Question

Quizplus · Accepted Answer

Government spending for the purpose of achieving full employment or price stability is an example of fiscal policy. Fiscal policy refers to the use of government spending and taxation to influence the economy. In this case, government spending is used as a tool to achieve economic goals. Monetary policy, on the other hand, refers to the use of interest rates and money supply to influence the economy. Exchange-rate policy refers to the use of exchange rates to influence trade and economic growth. As such, choices A, B, and C do not accurately describe the use of government spending for achieving full employment or price stability.

Government Spending Conducted for the Purpose of Achieving Full Employment