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Supply-side Economics
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∙ 11y ago
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How does the government typically change fiscal policy to try to keep the economy stable during a period of rapid economic growth?
increasing taxes on business and individuals
How can fiscal policy be used to stimulate Australia's economic activity?
fiscal policy can be used to stimulate economic activity by increasing spending. this is done by reducing taxes and increasing government spending to increase supply and demand which has a flow on effect for individual spending.
Increasing the money supply involves which type of economic policy?
An economic policy of enhancing growth, especially in exports will increase the money supply. This can be measured from recent economic history. The last thing, or shall I say an increase in taxes will de-stimulate the growth of the money supply. Another negative would be to increase the money supply by fiat, or in other words "printing it"
What are the two parts of fiscal policy?
Fiscal policy is a way in which the government can attempt to influence economic activity through spending and taxation. By either increasing spending or decreasing taxes, the government is often attempting to stimulate economic activity during times of recession. By decreasing spending or increasing taxes, the government is trying to slow down economic activity during times of inflation.
Policy that influences inflation unemployment taxes and general economic prosperity or depression is called?
economic policy
What Is An Example of Fiscal Policy?
Increasing taxes to pay for greater military spending.
What is the definition of expansionary fiscal policy?
Expansionary fiscal policy refers to policies aimed at increasing demand and thus output. This is done by expanding/increasing government expenditure, reducing taxes or doing a bit of both.
An economic policy that advocated a reduction in government spending and cuts in personal income taxes is?
reagonomics
Is fiscal policy when the government uses government spending and taxes to affect economic performance?
Yes. :)
What government policies pursue the economic goal of growth?
Increasing the money supplyapex ;PAngelIncreasing the money supply
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.
How is fiscal policy controlled?
Taxes, and government spending. Increasing taxes will decrease consumption and supply. Lowering taxes will increase consumption and supply. Increasing government spending will increase national consumption, and decreasing government spending will decrease national consumption. The economics AD-AS model shows a visual representation of the effects of fiscal policy on the economy if you are further interested.
