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What is inflationary fiscal policy?

Updated: 9/23/2023
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Q: What is inflationary fiscal policy?
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What is the anti-inflationary fiscal policy?

chut


What is contractionary policy?

A contractionary fiscal policy refers to government measures to reduce its expenditure in order to close the inflationary gap. The government reduces the money in supply by effecting tax increases.


What amount should be used to shift aggregate demand by fiscal policy when macro equilibrium is above full employment?

by the amount of the Aggregate demand excess. known as the Inflationary gap


What is non monetised deficit?

Counteracts the inflationary effect of the deficit in the operation balance


Fiscal policy and its objectives?

fiscal policy OBJ. in relation to taxation policy and expenditure policy


What is fiscal policy centered on?

Fiscal policy is a policy centered on ideas and research.


Who controls fiscal policy?

The president and congress together control the fiscal policy.


Who regulate the Fiscal Policy of India?

The president regulates the fiscal policy of India.


Should you increase taxes or cut taxes?

This is a politically charged subject, so this is highly debatable. But, I will tell you it is generally more helpful to cut taxes in a recession and raise taxes in an inflationary period.The reason you want to cut taxes in a recession(or just stick with an expansionary fiscal policy) is to increase Aggregate Demand is gain a state of growth.You would want to raise taxes in an inflationary period(or just have a contradictory fiscal policy) is to decrease inflation which is probably caused by too much demand. China is a great example!


Is instruments of fiscal policy and tools of fiscal policy the same thing?

Yes these are same................


The economic policy that manages the business cycle by changing government spending is called .?

fiscal policy


What are the limits to fiscal policy?

The limits to fiscal policy are difficulty of changing spending levels, predicting the future, delayed results, political pressures and coordinating fiscal policy.