The federal government's attempt to influence or stabilize the economy through taxing and government spending.
A
Command Economy
B
Foreign Policy
C
Domestic Policy
D
Fiscal Policy



Answer :

Final answer:

Fiscal policy involves government spending and taxation to shape economic conditions, targeting stability and growth.


Explanation:

Fiscal policy is the use of government spending and taxation to influence the economy. Governments utilize fiscal policy to impact aggregate demand, aiming for price stability, full employment, and economic growth. By adjusting tax levels and government spending, authorities can steer the economy towards desired outcomes.


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