Multiple Choice
What is the purpose of fiscal policy?
A) Fiscal policy uses the federal government's powers over spending and taxation to affect employment, the price level, and GDP.
B) Fiscal policy uses the federal government's powers over the money supply and interest rates to affect employment, the price level, and GDP.
C) Fiscal policy uses the federal government's powers over spending and taxation to affect employment and prices, but NOT to affect the level of GDP.
D) Fiscal policy uses the federal government's powers over spending and taxation to affect employment and the level of GDP, but NOT to affect the price level.
Correct Answer:

Verified
Correct Answer:
Verified
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