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The problem of how to reverse Japan’s long-running deflation has become the defining economic issue for Shinzo Abe, leader of the Liberal Democratic Party.

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11y ago
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12y ago

Fiscal policy helps stabilize the economy in this way: we know that during the recession, the government use fiscal policy ... or gives out stimulus packages to boost up the economy growth.

DUring recession, people don't want to spend money. The government gives out stimulus to encourage business to hire more workers. More workers, the recession will be soon be over. ... then the economy is stabilized ...

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11y ago

economic

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Q: How fiscal policy can influence the economy?
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Related questions

Controlling money to influence the economy is called?

Fiscal policy is the controlling of money to have an overall influence of the economy. Fiscal policy is based on ideas from economist John Maynard Keynes.


What is called fiscal policy?

Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy


Governmental fiscal policy?

Governments do not influence fiscal policies, only monetary policy - Expansionary fiscal policy, where money is injected into the economy to create activity. - Contractionary fiscal policy, where money is withheld from the economy in the hope to control or even reduce inflation.


What do you call how taxes and spending influence the economy?

Demand-Side Economics.


Government spending and revenue collection used to influence the economy is referred to as what?

Fiscal Policy


The process by which the government manages spending and taxes to influence the direction of the economy is?

fiscal policy


What concept involes using government spending and taxation to influence the economy?

Fiscal Policy :)


What is the impact of fiscal policy?

Fiscal policy is used by governments to influence the level of aggregate demand in the economy, in an effort to achieve economic objectives of price stability, full employment and economic growth.


What does fiscal policy involve?

spending levels and tax rates to monitor and influence a nation's economy


What do you mean by policy?

Fiscal policy refers to the use of government revenue collection and expenditure to influence the economy. It is the means to which a government adjusts its tax rates and spending levels.


What is the aim of Fiscal policy?

One of the major uses of government fiscal policy is to create stability in the economy. To curb inflation would be another use of fiscal policy.


What is the meaning and objectives of Fiscal policy?

Fiscal policy is how the government taxes and spends money. The objective of fiscal policy is to influence the economic activity of the governmentâ??s country.