LETS DO ECONOMICS! WAT Z FISCAL POLICY? Fiscal policy involves d use of govt income nd xpenditure instruments to regulate d economy.It z used to remedy adverse conditions in d economy such as inflation,deflation,balance of payments deficits,low level of productivity,economic recession,unemployment e.t.c If der z inflation in d country,d govt cud use fiscal instruments lyk increased taxation on personal income,increased borrowing frm d public,reduced govt spendin,all leadin to a decrease in d qty of money in circulation.consequently d level of prices will fall. It z diff frm physical policy.physical policy involves d use of d law to regulate d economy.it involves such tinz as a wage-freeze,foreign xchange control,quotas nd rationin.on d other hand,fiscal policy involves d use of govt income nd xpenditure policies or instruments.
Posted on: Mon, 24 Jun 2013 21:28:48 +0000
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