Question

Consider the following statements about fiscal policy: 1. Fiscal policy involves government spending and taxation to influence the economy. 2. Counter-cyclical fiscal policy refers to reducing government spending during a recession. 3. Fiscal policy aims to achieve economic stability and growth. Which of the above statements are correct?

A 1 and 3 only
B 2 and 3 only
C 1, 2, and 3
D 1 and 2 only
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