Fiscal Policy
Fiscal policy refers to the government's use of spending and taxation to influence the economy. By adjusting expenditures and tax rates, the government aims to promote economic growth, reduce unemployment, and stabilize prices. For example, increasing spending during a recession can boost demand and create jobs, while raising taxes in a booming economy can help control inflation. Essentially, fiscal policy is a tool that helps manage the economy's overall health and ensures it operates smoothly.
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Fiscal policy refers to how a government uses its spending and taxation to influence the economy. By increasing spending or cutting taxes, a government can stimulate growth and create jobs during economic downturns. Conversely, reducing spending or increasing taxes can help cool down an overheating economy and control inflation. Essentially, fiscal policy is a tool for managing economic stability, promoting growth, and addressing unemployment, ensuring that the economy operates effectively for its citizens.