Question

Senator Shulei Lee is alarmed at the state of the economy. Unemployment is high and GDP is low. Senator Lee has called for Congress to take action to increase government spending and cut taxes in order to stimulate the economy. The actions called for by Senator Lee are examples of:

Answer 1

Answer: Fiscal policy

Explanation:

Fiscal policy is defined as the policy in which tax rates, spending amount,revenue collection another expenditure of country is regulated and modified for proper management of countries economy. This adjustment helps in development of economy rate and covering economical loses.

According to the question,Senator Lee is indulging in fiscal policy for control and maintain falling rate of state's GDP and raising economy.He wants to take action of reducing taxes and increase spending for government for state.