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Economics Today: The Macro View Of Fiscal Policy

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Fiscal policy is a policy in which government adjusts its spending levels and tax rates to monitor and influence a nation’s economy. In Economics Today: The Macro View, fiscal policy is defined as “The discretionary changing of government expenditures or taxes to achieve national economic goals, such as high employment with price stability” (Miller, 2012, p. 278). This policy not only directs the overall economy, but suggests the urgencies of individual lawmakers. Furthermore, through this policy, regulators will attempt to control inflation, stabilize business cycles, improve unemployment rates, and influence interest rates in an effort to regulate the economy. Bearing in mind an economy is facing a recession, the government may lower the

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