Economics: Fiscal Policy

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  • 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


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