Economics: Fiscal Policy

HideShow resource information
  • Created by: Macaw
  • Created on: 27-01-13 18:05

Fiscal Policy: Fiscal Policy involved the government changing the levels of taxation and government spending in order to influence aggregate demand and therefore the level of economic activity.

*Aggregate demand is the total planned expenditure of goods and services produced in a given period of time (AD = C + l + G + X - M)

  • The Purpose of Fiscal Policy:

- Reducing the rate of inflation

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Fiscal policy resources »