Give some examples of changes in federal spending and taxes by the government that would be fiscal policy and some that would not.

Fiscal policy refers to the use of government spending and taxation to influence the economy. It is typically used by the legislative and executive branches of the government to promote stable economic growth, control inflation, and reduce unemployment.

Some examples of changes in federal spending and taxes that would be considered fiscal policy include: 1. Increasing government spending on infrastructure projects, such as building roads, bridges, and transportation systems. This would create jobs and stimulate economic growth. 2. Reducing income tax rates for individuals and businesses. This could encourage consumers to spend more and businesses to invest in expanding their operations, which in turn can contribute to economic growth. 3. Implementing a temporary tax cut or tax credit for a specific group of taxpayers, such as first-time homebuyers or small business owners. This targeted fiscal policy could incentivize a specific economic behavior, like purchasing a home or starting a business. 4. Increasing government spending on social welfare programs, such as unemployment benefits or food subsidies. This can help maintain consumption levels during an economic downturn, which can indirectly influence economic growth.

Some examples of changes in federal spending and taxes that would not be considered fiscal policy include: 1. Changing the structure or organization of government agencies, such as merging two departments or creating a new federal agency. While this may impact government efficiency or operations, it does not directly influence the economy through changes in spending or taxation. 2. Implementing policies or regulations that impact the environment, such as pollution control measures or renewable energy incentives. Although these policies may have indirect economic effects, they are not direct fiscal policy tools aimed at influencing the economy through spending or taxation. 3. Changing laws or regulations pertaining to the criminal justice system, such as drug policy reforms or prison sentencing guidelines. While these changes may have economic implications, they are not direct fiscal policy tools that influence spending or taxation. 4. Implementing foreign policy decisions, such as diplomatic relations or trade agreements. Although these can have economic consequences, they do not directly involve changes in federal spending or taxation and are therefore not considered fiscal policy.