Question

Quizlet Fiscal policy is A. the set of laws passed since the Great Depression to influence the macroeconomy. BY. policy enacted by corporations to control prices and output in the macroeconomy. C. adjusting the money supply to influence the macroeconomy. D. the use of government’s budget tools, government spending, and taxes to influence the macroeconomy. E. the government’s use of labor regulations to influence the macroeconomy.

Answer 1

The correct answer is letter "D": the use of government’s budget tools, government spending, and taxes to influence the macroeconomy.

Step-by-step explanation:

Fiscal policy is related to the combined governmental decisions on regards to the country's taxing and spending. The term itself is linked to British economist John Maynard Keynes (1883-1946) who believed governments should influence macroeconomic productivity levels by increasing the employment rate, fighting against inflation, and flattening business cycles.