What is fiscal policy?
Fiscal policy is the government's adjustments in taxation and government spending in order to influence the economy. For example, an increase in taxation and a reduction in government spending would reduce demand in an economy.
Related Economics A Level answers
All answers ▸If the Marginal Social Cost of Producing a good is higher than the marginal private cost -what has happened?
What effect would a fall in the interest rate have on GDP?
Assess the policies that could be used to reduce the UK’s balance of trade deficit
