macro3

macro3 - Shayra Medal Principles of Macroeconomics Essay 2...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Shayra Medal Principles of Macroeconomics Essay 2 Professor Sabet July 24, 2011 To begin with, the fiscal policy is brought about by the executive and, legislative branch. The two tools used to attain this are by spendings and taxes. In the Fiscal Policy there are three stances. Two of those stances are expansionary and contractionary. The expansionary stance basically tries to go over the tax revenue by government spending. They are basically running on a budget deficit in that current year. The difference between both the expenditures, and taxes can be manipulated by loaning funds from the government. One manipulation are by issuing bonds with high interest to fund the deficits. While contractionary contrast it basically has the government spending under the tax revenue. It is created in order to decrease demand. Fortunately, the government only needs to take minimal actions because of the multiple effects. Which in turn means that the government is running on a budget surplus for that current year. It is defined as the
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

macro3 - Shayra Medal Principles of Macroeconomics Essay 2...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online