Fiscal Policy Refers to the Federal Government's Efforts to Keep

question 192

True/False

Fiscal policy refers to the federal government's efforts to keep the economy stable by controlling the amount of money in circulation.

---

Definitions:

Aggregate Demand

The entire market's craving for goods and services within an economic territory, calculated at a fixed price level and within a set timeline.

Expansionary Gap

A situation in an economy where the real GDP is higher than the potential GDP, often leading to inflation.

Active Approach

A strategy, especially in investing or management, where decisions are made based on hands-on involvement and regular assessment of conditions.

SRAS Curve

Short-Run Aggregate Supply Curve represents the relationship between the total supply of goods and services produced by a country and the price level in the short term, holding wages and input prices constant.