What is the term for the idea that the government should guide the economy to full employment by calculated changes to spending and taxation?Multiple choice question.Crowding out policyCyclical fiscal policyCountercyclical fiscal policyMonetary policy

The deliberate use of changes in government spending and/or taxes to alter AD and stabilise the business cycle is called:Group of answer choicescontinuous fiscal policy.monetary policy.important international policy.discretionary fiscal policy.

Assume the economy is at full employment and that investment spending declines dramatically. If the goal is to restore full employment, government fiscal policy should be directed towardMultiple Choicean equality of tax receipts and government expenditures.a reduction of subsidies and transfer payments and an increase in tax rates.an excess of tax receipts over government expenditures.an excess of government expenditures over tax receipts.

Fiscal policy is a mechanism the government employs to influence the economy. Fiscal policy is based onMultiple Choicethe government's taxing and spending decisions.the money supply.the importance of maintaining a 12-month (fiscal year) economic cycle.the projections of the Federal Reserve Board.the idea that a balanced budget is the key to a healthy economy.

FISCAL POLICY

Fiscal policy describes a government's actions related to: