Economics

Question 1

_______ refers to the level of government spending and/or taxes.

Answer 1

Fiscal Policy

Question 2

________ policy raises government spending and/or lowers taxes to increase spending in the economy, thus eliminating unemployment.

Answer 2

Expansionary fiscal policy

Question 3

________ policies to stop inflation consist of a decrease in government spending and/or an increase in taxes, both of which lower the levels of spending in the economy.

Answer 3

Contractionary policies