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Define fiscal policy and list the two things the government does that fall under fiscal policy?
Wiki User
∙ 12y ago
Fiscal policy: the taxation and spending practices of the government
1. provide public needs, e.g. police, transportation, and an army
2. provide public assistance, e.g. healthcare and retirement
Wiki User
∙ 12y ago
Wiki User
∙ 10y ago1. provide public needs, e.g. police, transportation, and an army
2. provide public assistance, e.g. healthcare and retirement
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What are the two things the government does that fall under fiscal policy?
The term fiscal policy is used to describe an economic practice by the government. The two things the government does that fall under this policy is the process of collecting taxes and the management of spending.
What is fiscal politics?
Fiscal politics is anything going on in the government that has to do with monetary policy like budgets and things.
What does Contractionary fiscal policy includes?
Contractionary fiscal policy occurs when government spending is lower than tax. Governments can use a budget surplus to do two things. One main instrument of fiscal policy are changes in the levels and composition of tax.
Who controls monetary and fiscal policy?
No one controls it. It is a combination of factors that figures into monetary and fiscal policy. There are world factors, the price of gold, world stock markets, wars, and other things determine policy.
How do you distinguish fiscal policy from monetary policy?
Opinions about if fiscal policy or monetary policy is better will vary depending on who you ask. One country may benefit greatly with fiscal policy, while another may not. It all has to do with their economic system.
What is the definition of coercive federalism?
The federal government gives states list of things to do by limiting the money given to them. Coercive federalism, in which the federal government reduced its reliance on fiscal tools to stimulate inter-governmental policy cooperation and increased its reliance on regulatory tools to ensure the supremacy of federal policy.
What policy is related to money and banking?
Monetary Policy is related to money and banking. This policy influences things like the Discount Rate. In the United States this is controlled by the Federal Reserve system. The Government is responsible for Fiscal Policy, which is basically making decisions about taxation and spending. In the United States this is controlled (for better or for worse) by congress.
All the things government do is called?
public policy
All the things that a government does is called?
public policy
What is the name of all the things the government decides to do?
public policy
One of the major issues in macroeconomics is disagreement in the debate over policy activism versus policy rules What exactly is that disagreement Any implications?
This disagreement stems from differing views on government intervention in the economy. Policy activism requires that the monetary and fiscal policy be used in such a way as to improve the economy. This type of reasoning dates back to Keynes, who believed that the economy sometimes needs government help to avoid stagnation. Policy rules require instead that the government use such things as a constant-growth-rate policy so as to accommodate economic growth, but not to attempt to stimulate it. In other words, the economy is best left to its own devices, and government intervention causes more problems than it solves.
Why is fiscal policy necessary?
The fiscal policy is necessary to try to achieve macro economic objectives. These include, full employment, stability of internal and external values of the currency, equality and growth and development,etc. The fiscal policy consists of the government expenditure, income and the budget. The government must use the fiscal tools to achieve these objectives but this can be very tricky. At the end of the day it would be ideal if it could maintain a balanced budget (where expenditure is roughly equal to income). If it fails to do so, then there could be huge problems for the economy. By adjusting expenditure and income (mostly taxes) it can influense the entire economy, so its a delicate balancing act since most actions bring about both positive and negative concequences. Say for example, the government spends too much money on things, it will have to find a way to pay all the bills anway, so they will have to borrow money and in doing so there will be a budget deficit (spending more than you have), inflation, and a squeeze in the funds available for the private sector (if the government enters the private sector to get money, ex. banks)
