Fiscal Policy
Governmental use of spending and taxation to influence the economy.
Detailed Description
Fiscal Policy
What is the main purpose of fiscal policy?
The primary purpose of fiscal policy is to achieve macroeconomic stability and growth, including reducing unemployment and controlling inflation.
What are the two main components of fiscal policy?
The two main components of fiscal policy are government spending and taxation.
What is expansionary fiscal policy?
Expansionary fiscal policy involves increasing government spending or cutting taxes to stimulate economic growth during recessions.
How does fiscal policy impact the real estate market?
Fiscal policy can influence the real estate market by affecting property values and demand through government spending and tax incentives.
What distinguishes fiscal policy from monetary policy?
Fiscal policy focuses on government spending and taxation, while monetary policy involves managing the money supply and interest rates.