The control of aggregate demand through changes in government spending and tax rates is referred to as?
Answer Details
The control of aggregate demand through changes in government spending and tax rates is referred to as "fiscal policy." Fiscal policy is a tool that governments use to influence the economy by changing the amount of money they spend on public services and infrastructure, as well as the amount of money they collect in taxes from individuals and businesses. By adjusting government spending and taxation levels, policymakers can influence the level of economic activity in the short-term, which can have an impact on economic growth, inflation, and unemployment rates.