Economics Fiscal Policy Questions
Fiscal policy refers to the government's use of taxation and spending to influence the overall economy. It involves decisions on government spending, taxation, and borrowing to achieve specific economic objectives such as promoting economic growth, reducing unemployment, or controlling inflation.
On the other hand, fiscal consolidation refers to the deliberate actions taken by the government to reduce its budget deficit or debt levels. It involves implementing measures to decrease government spending, increase taxes, or a combination of both, with the aim of achieving a more sustainable fiscal position.
In summary, fiscal policy is a broader concept that encompasses various measures to manage the economy, while fiscal consolidation specifically focuses on reducing budget deficits or debt levels.