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

2831 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

How can changes to taxes cause a reduction in the public deficit?


Why might expansionary demand side policies not always be effective in promoting economic growth?


What's the difference between movements along and shifts in the demand curve?


Why is the demand for food relatively price inelastic?


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