Question
How does the federal government's fiscal policy affect the U.S. economy?(1 point)
Responses
The House and Senate pass new laws and regulations that can make changes to wealth distribution.
The House and Senate pass new laws and regulations that can make changes to wealth distribution.
The federal government implements tax and spending measures that affect employment, economic growth, and inflation.
The federal government implements tax and spending measures that affect employment, economic growth, and inflation.
Members of the federal government consult with banks to change interest rates and availability of lending.
Members of the federal government consult with banks to change interest rates and availability of lending.
The President issues executive orders to influence changes to consumer and business spending.
Responses
The House and Senate pass new laws and regulations that can make changes to wealth distribution.
The House and Senate pass new laws and regulations that can make changes to wealth distribution.
The federal government implements tax and spending measures that affect employment, economic growth, and inflation.
The federal government implements tax and spending measures that affect employment, economic growth, and inflation.
Members of the federal government consult with banks to change interest rates and availability of lending.
Members of the federal government consult with banks to change interest rates and availability of lending.
The President issues executive orders to influence changes to consumer and business spending.
Answers
GPT-4o mini
The correct response is:
**The federal government implements tax and spending measures that affect employment, economic growth, and inflation.**
This option accurately captures how fiscal policy—through decisions on taxation and government spending—directly influences the overall economy, including levels of employment and inflation.
**The federal government implements tax and spending measures that affect employment, economic growth, and inflation.**
This option accurately captures how fiscal policy—through decisions on taxation and government spending—directly influences the overall economy, including levels of employment and inflation.