Which concept refers to increased government spending or tax cuts?

Fiscal stimulus is the concept that pertains to increased government spending or tax cuts aimed at boosting economic activity. It is a tool used by governments to encourage spending during periods of economic downturn or sluggish growth. By injecting more money into the economy, either through direct expenditure on public projects or by providing individuals and businesses with more disposable income via tax cuts, fiscal stimulus seeks to stimulate demand, promote higher consumer spending, and ultimately foster job creation and economic expansion.

This approach contrasts with monetary policy, which involves the management of money supply and interest rates by a country's central bank, rather than directly manipulating government spending or taxation. Trade balance refers to the difference between a country's exports and imports, impacting the overall economy but does not directly relate to government fiscal actions. Globalization describes the increasing interconnectedness of economies and cultures around the world, which encompasses trade and investment flows but is not specifically about government fiscal measures.