Fiscal policy refers to the
A)manipulation of the money supply in order to increase the amount of paper currency in circulation.
B)adjustment of government spending and taxes in order to achieve certain national economic goals.
C)adjustment of national income data to account for price level changes.
D)changing the way unemployment data is calculated so as to make it appear that unemployment is lower than it actually is.

Question

Quizplus · Accepted Answer

Fiscal policy refers to the use of government spending and taxation to manipulate the economy in order to achieve certain national economic goals, such as controlling inflation, stimulating economic growth, or reducing unemployment. It is different from monetary policy, which involves manipulating the money supply and interest rates to achieve similar objectives.

Fiscal Policy Refers to the