Economics Fiscal Policy Questions Medium
Fiscal policy refers to the government's use of taxation and spending to influence the overall economy. It involves the decisions made by the government regarding its revenue collection and expenditure patterns, with the aim of achieving certain economic objectives such as economic growth, price stability, and full employment.
On the other hand, fiscal stimulus packages are specific measures implemented by the government to boost economic activity during times of economic downturn or recession. These packages are designed to stimulate aggregate demand and encourage spending and investment in order to revive the economy. Fiscal stimulus packages typically involve temporary tax cuts, increased government spending on infrastructure projects, subsidies, or direct cash transfers to individuals or businesses.
In summary, fiscal policy is a broader concept that encompasses the overall government's approach to managing the economy, while fiscal stimulus packages are specific measures implemented within the framework of fiscal policy to address economic downturns and stimulate economic growth.