"The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s, when the previous laissez-faire approach to economic management became unworkable."
Explanation of the difference between monetary policy and fiscal policy, and how the two can work together to achieve economic stability.
Introduction to Fiscal Policy: Understanding the basics of fiscal policy and its significance in the economic context.
Government Spending: The measures taken by the government to boost the economy through various types of spending such as infrastructure spending, defense spending, welfare spending, etc.
Revenue Collection: Understanding the processes and methods used by the government to collect revenue through various sources such as taxes, duties, fees, etc.
Budget Deficits: Learning the concept of budget deficits, their impact on the economy, various types of deficits, and ways to reduce them.
Debt Management: Understanding how governments manage their debts, the impact of debt on the economy, and various methods to control it.
Fiscal Policy Tools: Discussing various fiscal policy tools such as tax policies, government spending, and transfer payments used by governments to manage the economy.
Fiscal Responsibility: The importance of fiscal responsibility and accountability in ensuring stable economic growth.
Institutional Framework: Learning about the role of various institutions such as central banks, treasury departments, and other government agencies in implementing fiscal policy.
Macroeconomic Models: Understanding macroeconomic models such as Keynesian, Monetarist, and Classical models to analyze the effectiveness of fiscal policy.
International Trade Relationships: The impact of fiscal policy on international trade relations and the role of fiscal policy in promoting international trade.
"Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorized that government changes in the levels of taxation and government spending influence aggregate demand and the level of economic activity."
"Fiscal and monetary policy are the key strategies used by a country's government and central bank to advance its economic objectives."
"Changes in the level and composition of taxation and government spending can affect macroeconomic variables, including: - Aggregate demand and the level of economic activity - Saving and investment - Income distribution - Allocation of resources."
"Fiscal policy deals with taxation and government spending and is often administered by a government department; while monetary policy deals with the money supply, interest rates and is often administered by a country's central bank."
"It is designed to try to keep GDP growth at 2%–3% and the unemployment rate near the natural unemployment rate of 4%–5%. This implies that fiscal policy is used to stabilize the economy over the course of the business cycle."
"The previous laissez-faire approach to economic management became unworkable during the Great Depression of the 1930s."
"Fiscal policy is used to stabilize the economy over the course of the business cycle."
"Fiscal policy is based on the use of government revenue collection (taxes or tax cuts) and expenditure to influence a country's economy."
"Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorized that government changes in the levels of taxation and government spending influence aggregate demand and the level of economic activity."
"Inflation is considered 'healthy' at the level in the range 2%–3%."
"Fiscal policy is designed to increase employment."
"The unemployment rate near the natural unemployment rate of 4%-5% is targeted by fiscal policy."
"Both fiscal and monetary policies influence a country's economic performance."
"The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s."
"The previous laissez-faire approach to economic management became unworkable during the Great Depression of the 1930s."
"Fiscal policy can affect macroeconomic variables, including aggregate demand and the level of economic activity, saving and investment, income distribution, and allocation of resources."
"Government revenue collection (taxes or tax cuts) and expenditure are the primary tools of fiscal policy."
"Fiscal policy is often administered by a government department."
"Fiscal policy deals with taxation and government spending, while monetary policy deals with the money supply and interest rates."