Fiscal policy affects aggregate demand and economic activity through taxes and government spending changes. For example, tax cuts increase aggregate demand and stimulate economic growth. Unlike businesses and households, taxes and spending changes
Fiscal Policy
Keynesian: Meaning, The Main Thoughts
Keynesian economics is an economic theory that holds the view of John Maynard Keynes. Keynes holds that the government - through its fiscal budget - has a strategic role in influencing the economy. He believes the government needs to change
Fiscal Policy: Types, Pros and Cons
Fiscal policy is a macroeconomic policy to influence the economy by using budgetary instruments such as taxes and government expenditure. It complements monetary policy in affecting the economy. Both are demand-side policies because they