Fiscal_policy_(04-Dec-2016).docx - Running head FISCAL...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Running head: FISCAL POLICY 1 Fiscal Policy Student’s Name Institutional Affiliation 04-Dec-2016
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
FISCAL POLICY 2 Fiscal Policy Fiscal policy refers to the use of taxes, government transfers, or government purchase of goods and services to shift the aggregate demand curve. The effect of government expenditure, taxation and debt on the aggregate economy is the immense importance, and therefore, great controversy in economics. The government provides a wide range of significance services. These services require the collection of taxes and legal fees. Most governments across the world use fiscal policy as a means of sustaining the economy and lowering the level of poverty. It is worth noting that the monetary policy has influence the governments to support financial systems, and moderate the effect of economic crisis on underdeveloped economic nations. Definition of terms Profit: a financial gain in an investment Fiscal Policy: Is the use of government spending and taxation to influence economy. Business cycle : this is a series of economic contraction and expansion Automatic stabilizers : these are features of the structure of current administrative budgets, specifically welfare spending and income taxes that dampen fluctuation in real GDP Deficit: this is the amount by which a sum of money is not enough over a given period Unemployment: the state of people lacking jobs Aggregate demand : is the total demand for the final products and services in an economy at a given time. Leakages: is a diversion of the funds from particular iterative process
Image of page 2
FISCAL POLICY 3 Inflation : Can be described in business term as the increase in prices and fall in the buying value of money Macro-economic : is generally the part of economics that is focused on the general economic factors or the large-scale factors, for instance the national productivity or interest rates Monetary Policy : Refers to the process by which the fiscal authority of an economy controls the supply of money.
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern