Respuesta :
When the government makes an effort to control the economy by using fiscal policy tools. It uses expenditure, taxation, and debt management.
The phrase "fiscal policy" refers to how the government utilizes spending and taxation to affect the economy. Fiscal policy is widely used by governments to encourage robust, long-term growth and to lower poverty.
A fiscal expansion approach has reduced taxes and higher government expenditure as its two main outcomes. Both of these strategies aim to boost overall demand while reducing or boosting budget deficits.
Fiscal policy is the process through which the government alters its expenditure and revenue in order to have an effect on the wider economy. By altering its level of spending and tax revenue, the government can have a short-term positive or negative impact on the economy.
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