Question

Government spending and revenue collection used to influence the economy is referred to as _____. the federal budget fiscal year an appropriations bill fiscal policy

Answer 1

The missing words in the statement above is fiscal policy. Government spending and revenue collection used to influence the economy is referred to as fiscal policy. Based from the Keynesian economics, the government changes the amount of taxes the spending of the government.

Answer 2

Answer:

Fiscal policy

Explanation:

Fiscal policy is the government spending and revenue collection (taxing) used to influence the economy for the mid or long term so that the inflation and wages levels remain stable, the rate employment be high, and economic growth exist in general.

There are mainly two types of fiscal policies that governments use depending on the economic state that a nation is in: the Expansionary Fiscal Policy and a Contractionary Fiscal Policy. The first one is used when a nation has a high unemployment rate and there is not enough demand, so the government aims at stimulating economic growth by cutting taxes and increasing government spending. And the Contractionary Fiscal Policy is used when a nation has inflation and the government tries to counteract this inflation by raising taxes and decreasing government expanding, that is to say.