Question

Government fiscal policy is meant to eliminate or avoid boom and bust scenarios in the economy. government fiscal policy is meant to eliminate or avoid boom and bust scenarios in the economy. true or false

Answer 1

False. Government fiscal policy is not meant to eliminate or avoid boom and bust scenarios in the economy.

Step-by-step explanation:

False. Government fiscal policy is not meant to eliminate or avoid boom and bust scenarios in the economy. Fiscal policy is one of the ways in which the government influences the economy. Its goal is to manage the business cycle so that the economy neither grows too fast nor shrinks too precipitously. It does this by changing taxing or spending policies to influence aggregate demand and/or aggregate supply.