Fiscal Policy: definition, statistics etc

1)DEFINITIONSThe financial policy is at the heart of the management of the frugality. It quarter influence the overall level of sparing application and brush off digest a targeted impact on specific sectors of the economy such as individual industries or social groups. The pecuniary policy refers to the use f the federal political relation?s annual figure to affect the level of economic activity and the achievement of objectives such as internal and external balance wheel and economic growth. Two main instruments of the fiscal policy ar political science spending and taxes government manipulation of the levels and composition of revenue and government spending has an impact on the following variables: unite demand and the level of economic activity, the archetype of resource assignation and the distribution of incomeEconomic activity: The production and distribution of goods and services at all levels. Economic activity and expected future levels of it have an important influence on security prices because of the interrelationship among economic activity and corporate profits, inflation, interest rates, and other variables. atomic number 53 frequently used measure of economic activity is the bring in domestic product.

Taxation: charge against a citizens person or property or activity for the support of governmentRevenue: the income of a government from taxation, excise duties, customs, or other sources, appropriated to the payment of the public expenses.

2)ROLE OF GOVERNMENTThe fiscal policy involves the use of the commonwealth government?s budget in stray to achieve the government?s economic objectives. By varying the amount of government spending and revenue, the government can?t alter the level of economic activity, which in turn will influence economic growth, inflation, unemployment and the external indicators in the economy. It may also lead to a reallocation of resources which changes the pattern of production in the economy as we as redistributing income inwardly the community.

3)contribution to economic growthThe...

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