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

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of government spending and taxation to influence the economy. The government can increase aggregate demand by increasing government spending or decreasing taxes, while it can decrease aggregate demand by decreasing government spending or increasing taxes. Manipulating the money supply is the responsibility of the central bank, while the treasury and energy departments are not directly involved in regulating aggregate demand.

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