The use of government revenue and expenditure to achieve set objectives is known as
Answer Details
The use of government revenue and expenditure to achieve set objectives is known as fiscal policy.
Fiscal policy is a government's use of spending and taxation to influence the economy. The government can use its revenue and expenditure to stimulate economic growth, control inflation, and manage the overall health of the economy.
For example, if the government wants to stimulate economic growth, it can increase its spending on infrastructure projects such as building roads, bridges, and schools. This will create jobs, boost consumer spending, and increase demand for goods and services, which can lead to economic growth.
On the other hand, if the government wants to control inflation, it can decrease its spending or increase taxes. This will reduce the amount of money available for consumers to spend, which can decrease demand and control inflation.
Fiscal policy is an important tool used by governments to achieve their economic objectives, and it is often used in combination with other policies such as monetary policy to achieve the desired results.