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In economics and political science, fiscal policy is the use of government revenue collection (taxes or tax cuts) and expenditure to influence a country's economy.
In economics and political science, fiscal policy is the use of government revenue collection (taxes or tax cuts) and expenditure to influence a country's economy.
True (A)
The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s.
The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s.
True (A)
Fiscal policy is based on the theories of the British economist Adam Smith.
Fiscal policy is based on the theories of the British economist Adam Smith.
False (B)
Fiscal and monetary policy are the key strategies used by a country's government and central bank to advance its economic objectives.
Fiscal and monetary policy are the key strategies used by a country's government and central bank to advance its economic objectives.
In modern economies, inflation is conventionally considered 'healthy' in the range of 5%–6%.
In modern economies, inflation is conventionally considered 'healthy' in the range of 5%–6%.
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Study Notes
Fiscal Policy
- Fiscal policy is the use of government revenue collection (taxes or tax cuts) and expenditure to influence a country's economy.
- The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s.
Foundational Theories
- Fiscal policy is based on the theories of the British economist Adam Smith.
Government Strategies
- Fiscal and monetary policy are the key strategies used by a country's government and central bank to advance its economic objectives.
Macroeconomic Objectives
- In modern economies, inflation is conventionally considered 'healthy' in the range of 5%–6%.
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