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Which action would be a change in the government's fiscal policy

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βˆ™ 9y ago
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an increase in taxes

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Q: Which action would be a change in the government's fiscal policy?
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Related questions

What is the difference between automatic and discretionary fiscal policy?

Discretionary fiscal policy requires deliberate government action. Automatic fiscal policy occurs automatically without (additional) congressional action.

Governmental fiscal policy?

Governments do not influence fiscal policies, only monetary policy - Expansionary fiscal policy, where money is injected into the economy to create activity. - Contractionary fiscal policy, where money is withheld from the economy in the hope to control or even reduce inflation.

The leaders of a small country decide that they need to enact a contractionary fiscal policy Which action is consistent with this fiscal policy?

A reduction in government spending is consistent with a contractionary fiscal policy.

When the governments raise or lowers taxes it is one form of?


What is the way governments use taxes and spending to stabilize the economy called?

Fiscal Policy

What does Contractionary fiscal policy includes?

Contractionary fiscal policy occurs when government spending is lower than tax. Governments can use a budget surplus to do two things. One main instrument of fiscal policy are changes in the levels and composition of tax.

What are the two tools of fiscal policy that governments can use to stabilize an economy?

government spending and taxation

What is the impact of fiscal policy?

Fiscal policy is used by governments to influence the level of aggregate demand in the economy, in an effort to achieve economic objectives of price stability, full employment and economic growth.

What is governments action in response to an issue?

public policy

Which action is most likely to result in a decrease in money supply?

A contractionary monetary policy or a contractionary fiscal policy.

What refers to the governments pursuit of full employment and price stability through variations in taxes and government spending?

Fiscal policy

Fiscal policy and its objectives?

fiscal policy OBJ. in relation to taxation policy and expenditure policy