## How Fiscal Policy Really Moves the Economy
Have you ever wondered how a government manages to change the course of a country's economy? This is where fiscal policy comes into play: that set of decisions about taxes and public spending that determines how money flows in a nation.
### The mechanism behind each decision
Fiscal policy works in a surprisingly simple way. When authorities increase or decrease public spending and adjust tax rates, they are directly manipulating the aggregate demand of the economy. It's like pressing an accelerator or a brake: increasing public spending and