Question

Which action would be a change in the government's fiscal policy?

A) an increase in taxes
B) a decrease in unemployment
C) a decrease in collected revenues
D) an increase in the price of goods

Answer 1

A) an increase in taxes

Fiscal policy is how the government manages money to achieve specific goals, like economic growth with stable prices. An increase in taxes would mean a change in fiscal policy. Unemployment, prices of goods, and revenue collections are connected to fiscal policy, but are not actually policies set by the government.