fiscal policy Sentence Examples
- Fiscal policy is a branch of macroeconomic policy that uses government spending and taxation to influence the economy.
- The government employs fiscal policy to accomplish various economic goals, such as maintaining price stability, full employment, and sustainable economic growth.
- Governments design fiscal policies to influence aggregate demand, which is the total demand for goods and services in an economy.
- Expansionary fiscal policy includes increasing government spending and cutting taxes to boost aggregate demand and stimulate economic growth.
- Contractionary fiscal policy involves reducing government spending and raising taxes to curb aggregate demand and combat inflation.
- Automatic fiscal stabilizers are built-in mechanisms that trigger changes in government spending or taxation in response to economic fluctuations.
- Fiscal policy plays a critical role in addressing short-term economic fluctuations and long-term economic challenges.
- The effectiveness of fiscal policy depends on various factors, including the size of the government sector, the responsiveness of consumers and businesses, and the state of the economy.
- Coordination between fiscal policy and monetary policy is often essential for achieving economic stability.
- Fiscal policy is a powerful tool for governments to manage economic activity, but it must be used responsibly and cautiously to avoid unintended consequences.
fiscal policy Meaning
fiscal policy (n)
a government policy for dealing with the budget (especially with taxation and borrowing)
Synonyms & Antonyms of fiscal policy
No Synonyms and anytonyms found
FAQs About the word fiscal policy
a government policy for dealing with the budget (especially with taxation and borrowing)
No synonyms found.
No antonyms found.
Fiscal policy is a branch of macroeconomic policy that uses government spending and taxation to influence the economy.
The government employs fiscal policy to accomplish various economic goals, such as maintaining price stability, full employment, and sustainable economic growth.
Governments design fiscal policies to influence aggregate demand, which is the total demand for goods and services in an economy.
Expansionary fiscal policy includes increasing government spending and cutting taxes to boost aggregate demand and stimulate economic growth.
