What is fiscal policy?

Fiscal policy is the government's adjustments in taxation and government spending in order to influence the economy. For example, an increase in taxation and a reduction in government spending would reduce demand in an economy. 

DO
Answered by Danny O. Economics tutor

3316 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain the use of interest rates in the economy.


How can globalisation increase domestic competitiveness?


Why does a lower interest rate increase aggregate demand?


What is PED and how do I calculate it?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences