"In the face of unstable economic growth due to a recession or accelerated inflation, the potential problems of high public debt include increased income inequality, reduced economic incentives, and crowding out private investment." 1. Explains in detail fiscal policy, its role and its effects on short- and long-term economic fluctuations. 2. Explain each of the tools that exist in expansionary fiscal policy and contractionary fiscal policy.
Read the following premise carefully and answer the questions specifically and in detail.
"In the face of unstable
1. Explains in detail fiscal policy, its role and its effects on short- and long-term economic fluctuations.
2. Explain each of the tools that exist in expansionary fiscal policy and contractionary fiscal policy.
Fiscal policy:
It is the policy under which the government spends money to develop the economy. The government collecting taxes and borrowing from the public are the objectives of this policy. government spend money and collect tax for the sustainable growth of the economy.
The three fiscal policy tools are taxation, government expenditure, and transfer payment. It influences aggregate demand.
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