Fiscal policies are designed to affect the aggregate demand curve through federal spending and taxing decisions. True or false

Fiscal policy may be defined as the government's actions to influence an economy by the use of taxation and spending. This policy can be used in order to stimulate a sluggish economy or to slow down an economy that is growing at a rate which is getting out of control because this policy directly affects the aggregate demand of an economy. Remember that aggregate demand is the total number of final goods and services in an economy, which include consumption, investment, government spending, and net exports.

True.