BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Government spending
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Taxes
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Monetary policy
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International trade
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Detailed explanation-1: -Governments responded by trying to boost activity through two channels: automatic stabilizers and fiscal stimulus-that is, new discretionary spending or tax cuts. Stabilizers go into effect as tax revenues and expenditure levels change and do not depend on specific actions by the government.
Detailed explanation-2: -Fiscal policy is therefore the use of government spending, taxation and transfer payments to influence aggregate demand. These are the three tools inside the fiscal policy toolkit.
Detailed explanation-3: -The three main components of the Fiscal Policy of any country are – government receipts (revenue and capital), government expenditure (revenue and capital) and public debt.
Detailed explanation-4: -There are three types of fiscal policy.They are neutral policy, expansionary policy, and contractionary policy.