When the Government Attempts to Stabilize the Economy by Changing

question 8

True/False

When the government attempts to stabilize the economy by changing taxes or government expenditures, it is using fiscal policy.

---

Definitions:

Remedial Measures

Actions taken to correct or improve a situation, often implemented after identifying problems or weaknesses.

Systematic Thinking

A cognitive approach that involves understanding and solving problems through a step-by-step process, considering all components and their relationships.

Rational

Based on reasoning or logic; pertaining to the ability to think, understand, and form judgments by a process of logic.

Step-by-step

A phrase describing a process or procedure that takes place gradually, one stage at a time.