1 min read•june 8, 2020
Isabela Padilha Vilela
It is the way that the government manages the economy through taxes, borrowing and spending money. Democrats usually support a progressive tax policy, whereas Republicans want to decrease the amount of tax citizens pay.
The way the government influences the economy through money supply and interest rates.
Theory created by Adam Smith that states that the government should have the least amount of interference in the economy.
Consists on stimulating growth in order to stabilize the economy. Government spending should increase during slumps.