U.S. Government fiscal policy

U.S. Government fiscal policy involves managing government spending and taxation to influence the economy. By adjusting spending levels and tax rates, the government aims to promote economic growth, reduce unemployment, and control inflation. For example, increasing spending or cutting taxes can stimulate economic activity during downturns, while reducing spending or raising taxes can help cool down an overheating economy. These decisions are made to shape economic conditions and achieve long-term fiscal stability and growth.