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Fiscal policy refers to what the government does to affect the economy. It basically covers the government's plans to influence the economy through their spending and income streams. The most common policy that probably affects everyday Joes like you and me is that of TAXES. A government can alter the amount of taxes they collect in order to have a desired effect on the economy.
about 1 year ago
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Fiscal policy involves government expenditure and taxation. By changing these variables, the government can influence aggregate demand (or overall spending), resource allocation, and income distribution.
about 1 year ago
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