ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the use of government taxing and spending to promote economic stability.
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the policy of laissez-faire.
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a set of government actions designed to increase unemployment over 5%.
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the use of government quotas to decrease GDP and unemployment.
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Detailed explanation-1: -Fiscal policy is defined as the policy under which the government uses the instrument of taxation, public spending and public borrowing to achieve various objectives of economic policy. Simply put, it is the policy of government spending and taxation to achieve sustainable growth.
Detailed explanation-2: -Expansionary fiscal policy is defined as the policy that works towards promoting the consumption in the economy.
Detailed explanation-3: -Fiscal policy is a means to use government spending and taxation to influence the economic situation. It is different from the monetary policy that is under the control of the central bank in that country. Together these two policies can help a country to achieve its economic goals.
Detailed explanation-4: -Both monetary and fiscal policies are used to regulate economic activity over time. They can be used to accelerate growth when an economy starts to slow or to moderate growth and activity when an economy starts to overheat. In addition, fiscal policy can be used to redistribute income and wealth.
Detailed explanation-5: -There are three components of the Fiscal Policy of India: Government Receipts. Government Expenditure. Public Debt.