explain the function of fiscal policy

fiscal policy is the procedure by which the government attempts to increase or decrease the aggregate demand level of an economy by manipulating government spending and or tax rates, for example increase in tax and less gov spending leads to lower disposable income and hence lower aggregate demand.

SS
Answered by Shivam S. Economics tutor

2980 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Are living standards always lower in developing countries than developed countries?


Analyse Indifference Curves and the effect on lower prices. (20)


How can you calculate the Price and Quantity at a market equilibrium given the Demand curve P = 20 - Q and the Supply curve P = 3Q


What is opportunity cost?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning