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What is Understanding Government Fiscal Policy about?

Fiscal policy involves using government spending, taxation, and borrowing to affect aggregate demand, output, and employment. It can also redistribute income and wealth. Fiscal policy changes aggregate demand and supply. In the UK, the Treasury is responsible for fiscal policy decisions. Traditionally, fiscal policy has been used for demand management to counter economic volatility and recessions. The transmission mechanism shows how expansionary fiscal policy boosts demand. Contractionary fiscal policy inv

Author

Lavanya Thevi

Language

EN