Question

This diagram shows a government’s approach to taxing and spending.
A diagram shows that taxes go into the government, which then go into spending.
Which of these would be a good title for this diagram?
Responses

Government Spending
Government Spending

The Federal Debt
The Federal Debt

The National Economy
The National Economy

Fiscal Policy

Answer 1

Fiscal Policy

Reason: The diagram shows taxation and government spending, which together describe fiscal policy. "Government Spending" is only part of that, while "The Federal Debt" and "The National Economy" are not what the diagram specifically depicts.