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When inflation increase

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Q: How does the government fiscal policy affect the economy?
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What refers to the use of taxation and government expenditures to affect the economy?

Fiscal policy


Does Pakistan follow expansionary fiscal policy?

Fiscal policy is the manipulation of taxation and government spending by the government to affect the economy . Expansionary fiscal policy is when the government what to increase aggregate demand by decrease taxation.Pakistan does not use expantionary fiscal policy because Pakistan have highly economic growth and macroeconomic stability but also some poverty reduction(increase in standard of living)


What is called fiscal policy?

Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy


What is the aim of Fiscal policy?

One of the major uses of government fiscal policy is to create stability in the economy. To curb inflation would be another use of fiscal policy.


What is the purpose of the government's fiscal policy?

To stabilise a particular countries economy.


Measures that the federal government takes to stabilize the economy are .?

fiscal policy


What are the Measure that the federal government takes to stabilize the economy?

fiscal policy


Can the government use monetary and fiscal policy to regulate the economy?

There is a general belief among economists that governments can regulate the economy. The discrepancies are whether this regulations can affect the economy in the long run or not.


The government can use monetary and fiscal policy to regulate the economy?

There is a general belief among economists that governments can regulate the economy. The discrepancies are whether this regulations can affect the economy in the long run or not.


What is the purpose of macroeconomic policy?

Macroeconomics is the study of the economy as a whole. Macroeconomic policy can be split into two branches: 1. Fiscal policy, which is the use of government spending to affect the economy. 2. Monetary policy, the process by which governments set the money supply.


When government spending and taxation influences the economy it is called?

it is known as fiscal policy


Which one of these does not describe a strong economy?

The government will assume an expansionary fiscal policy position.