Answer :
Final answer:
Macroeconomics is the subject that describes the use of government spending and taxes to reach macroeconomic goals in the economy. Fiscal policy involves government spending and taxes to impact the overall economy. It can be used to stimulate economic activity, control inflation, and promote growth.
Explanation:
The subject that describes the use of government spending and taxes to reach macroeconomic goals in the economy is Macroeconomics. Macroeconomics is a branch of economics that focuses on the behavior and performance of an economy as a whole, including issues such as inflation, unemployment, and economic growth. It examines how government policies, including fiscal policy, can influence these macroeconomic goals.
Fiscal policy refers to the use of government spending and taxes to impact the overall economy. When the government increases its spending or reduces taxes, it can stimulate economic activity and promote growth. Conversely, when government spending is decreased or taxes are raised, it can help reduce inflation or control the economy during periods of high growth.
For example, during a recession, the government may implement expansionary fiscal policy by increasing government spending and reducing taxes to stimulate aggregate demand and boost economic activity. On the other hand, during periods of high inflation, the government may implement contractionary fiscal policy by reducing spending and increasing taxes to slow down the economy and control inflation.
