One must adjust deficits and surpluses to eliminate automatic changes in tax revenues in order to do what?

Question

Multiple choice question.

Evaluate the status of monetary policy.

Evaluate the status of fiscal policy.

Evaluate the status of the economy.

Evaluate the status of current consumption.

Answer 1

The correct answer is: Evaluate the status of fiscal policy.

Adjusting deficits and surpluses to eliminate automatic changes in tax revenues helps to assess the underlying fiscal health and the intentional impacts of government policy, rather than changes that occur automatically due to economic conditions.