Question

This diagram shows a government approach to taxing and spending which of the following would be a good title for this diagram? Government spending the national economy the federal debt fiscal policy

Answer 1

D: Fiscal policy

Answer 2

The correct answer is FISCAL POLICY. This is a policy made by the government that controls the levels of outcome and spending through taxes and governmental spending to not disturb the stability of the country’s economics. So, if it shows taxing and spending, then it must be about a fiscal policy.