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

3138 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain why the UK have different minimum wage rates for different age groups


Why is the demand for food relatively price inelastic?


How should put in my essays for 25 mark questions?


Define 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:

© 2026 by IXL Learning