Asked by
Deztiney Hunter
on Nov 11, 2024
Verified
Fiscal policy focuses on manipulating _____.
A) aggregate demand to smooth out business fluctuations
B) aggregate supply to smooth out business fluctuations
C) both aggregate supply and aggregate demand to smooth out business fluctuations
D) aggregate demand to stimulate the economy and aggregate supply to contract it
E) short-run aggregate supply to stimulate the economy and aggregate demand to contract it
Fiscal Policy
Government policies relating to taxation and spending to influence the economy.
Aggregate Demand
The total demand for all goods and services within a particular market or economy at a given overall price level and in a given time period.
- Understand the influence of fiscal policy actions on the total demand and supply within the economy.
Verified Answer
CA
Learning Objectives
- Understand the influence of fiscal policy actions on the total demand and supply within the economy.