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Fiscal Policy
Fiscal policies involve the use of government spending and changing tax revenue to affect a number of aspects of the economy:
Overall aggregate demand in an economy and hence the level of economic activity.
Distribution of incomeand wealth among different segments of the population.
Allocation of resources between different sectors and economic agents.
The Relationship Between Fiscal and Monetary Policy:Policyassumption is made that wages and prices are rigid
The Advantages and Disadvantages of Using the Different Tools of Fiscal Policy:Different Tools of Fiscal Policy:DirectCapitalpowerful as the direct effects.
Factors Influencing the Mix of Fiscal and Monetary Policy:Monetary Policy;by the political context.:Both fiscal and monetary policies suffer from;lack of precise knowledge of where:studyNoaccommodation.
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