High School

A government spending and taxation policy to achieve macroeconomic goals is known as:

A. fiscal policy.

B. monetary policy.

C. supply-side policy.

D. fiscal restraint.

Answer :

A. fiscal policy is a government spending and taxation policy to achieve macroeconomic goals

What is government spending and taxation policy

The government spending and taxation policy to achieve macroeconomic goals, and the correct answer is fiscal policy. Fiscal policy refers to the use of government spending and taxation to influence the economy.

The government can increase spending and decrease taxes to stimulate economic growth, or it can decrease spending and increase taxes to slow down an overheating economy and control inflation.

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