Which policy refers to the government's actions of taxing and spending to achieve economic goals?

The policy that refers to the government's actions of taxing and spending to achieve economic goals is known as fiscal policy. This involves the use of government revenue collection and expenditure to influence the economy, aiming to stabilize and promote growth, control inflation, and reduce unemployment. Fiscal policy can take various forms, including increasing or decreasing taxes and altering government spending levels on programs and services.

In contrast, monetary policy primarily involves the management of interest rates and the money supply by central banks to influence economic activity. Expansionary policy is a broader term that can refer to both fiscal and monetary strategies aimed at stimulating economic growth. Regulatory policy revolves around government rules and regulations that dictate how businesses can operate but does not directly involve taxation and spending. Understanding these distinctions helps clarify the specific purpose and mechanisms behind fiscal policy in the economic landscape.