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31 March, 16:51

The use of government taxation and expenditures to achieve macroeconomic goals is called

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  1. 31 March, 17:09
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    Answer: Fiscal Policy

    Explanation:

    Fiscal Policy is when the Government uses taxation and expenditure to the impact the Aggregate Demand in the economy in order to try and attain Macro Economic Goals such has Economic Growth, achieving and maintaining full employment, Minimising inflation levels by achieve Price stability etc.

    the government achieves this by using taxes and government spending to sway the level of aggregate demand in the economy to a certain direction (by influence aggregate demand to decrease or increase) in order to start a chain of reaction. The opposing Policy to fiscal Policy is Monetary Policy where the central bank uses Money Supply and interest rates to achieve macro economic goals
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