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
Related Economics GCSE answers
All answers ▸Explain what a balance of trade deficit is
What are the advantages and disadvantages of globalisation? (6)
Explain why the UK have different minimum wage rates for different age groups
Explain what is meant by a negative externality and give an example of a negative externality that arises from fuel consumption.