In macroeconomics, fiscal policy most closely focuses on which government actions to influence aggregate demand and economic activity?
A
Changes in trade tariffs and import quotas to reduce the trade deficit
B
Changes in government spending and taxation
C
Changes in wage controls and price ceilings to reduce inflation directly
D
Changes in the money supply and policy interest rates by the central bank
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검증된 단계별 안내
1
Step 1: Understand the definition of fiscal policy. Fiscal policy refers to the use of government spending and taxation decisions to influence the overall economy, particularly aggregate demand and economic activity.
Step 2: Identify the tools of fiscal policy. These primarily include changes in government spending (such as infrastructure projects, social programs) and changes in taxation (such as tax cuts or increases).
Step 3: Recognize that other options like changes in trade tariffs and import quotas relate to trade policy, not fiscal policy.
Step 4: Note that wage controls and price ceilings are forms of direct regulation, not fiscal policy tools.
Step 5: Understand that changes in the money supply and policy interest rates are monetary policy tools, managed by the central bank, not fiscal policy.