Answer :

That exemplifies fiscal policy.

Fiscal policy is the use of public spending and taxation to affect the economy, particularly macroeconomic conditions. These include employment, inflation, economic expansion, and the total demand for goods and services.

The government may reduce tax rates or boost spending during a recession to boost demand and the economy. On the other hand, it might increase rates or reduce spending to slow down the economy in order to combat inflation.

Monetary policy, which is implemented by central bankers rather than elected government officials, is frequently contrasted with fiscal policy. John Maynard Keynes, a British economist, is largely credited with influencing U.S. fiscal policy (1883-1946).

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