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

2859 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What are some of the sources of unemployment?


How would you structure a 6 mark essay question?


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


Please show, using a diagram with explanation, the effect on the UK market for t-shirts of a flood in Bangladesh, a leading cotton growing nation.


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