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

2810 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Why do price of exchange rates increase when interest rates increase? What does it mean that a currency is strong?


What is the Marshall Lerner Condition?


What conditions allow a firm to sell the same product at different prices?


What is the Phillips curve?


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