B Com Exam > B Com Videos > Macro Economics > Fiscal Policy, Macroeconomics
Fiscal Policy, Macroeconomics Video Lecture | Macro Economics - B Com
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FAQs on Fiscal Policy, Macroeconomics Video Lecture - Macro Economics - B Com
| 1. What is fiscal policy? |  |
Ans. Fiscal policy refers to the government's use of taxation and expenditure to influence the overall economy. It involves the use of government spending and taxation to achieve specific economic objectives, such as controlling inflation, stimulating economic growth, or reducing unemployment.
| 2. How does fiscal policy affect the economy? | |
Ans. Fiscal policy can have various effects on the economy. For example, if the government increases its spending and reduces taxes, it can stimulate economic growth by increasing aggregate demand. On the other hand, if the government reduces spending and increases taxes, it can slow down the economy by reducing aggregate demand.
| 3. What are the tools of fiscal policy? | |
Ans. The main tools of fiscal policy are government spending and taxation. By increasing or decreasing government spending, the government can influence the level of aggregate demand in the economy. Similarly, by adjusting tax rates, the government can impact the disposable income of individuals and businesses, thereby affecting their spending and investment decisions.
| 4. What is expansionary fiscal policy? | |
Ans. Expansionary fiscal policy refers to the use of increased government spending and/or reduced taxes to stimulate economic growth. During times of recession or slow economic growth, expansionary fiscal policy can be implemented to boost aggregate demand and increase economic activity.
| 5. What is contractionary fiscal policy? | |
Ans. Contractionary fiscal policy is the opposite of expansionary fiscal policy. It involves reducing government spending and/or increasing taxes to slow down economic growth and control inflation. This policy is typically used when the economy is growing too fast and there is a risk of overheating or high inflation.
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Nov 16, 2024 Last updated |
Video Description: Fiscal Policy, Macroeconomics for B Com 2024 is part of Macro Economics preparation.
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