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fisical policy
If the government lowers your taxes your NET income increases.
Common laws can only be made by the federal government. Only if the legal legislation is passed by both upper and lowers houses and by the senate.
The economy is slowing down
lower interest rates.
it means they run the term for only a short while
monetary policy
Economic activity increases.
your net income increases, but your income tax decreases
your net income increases, but your income tax decreases
If central bank lowers discount rate prices will go up and it will be monetarily more expensive.
The Federal Reserve lowers interest rates during a recession in hopes to spark economic activity (aka consumer spending).