Economics Fiscal Policy Questions
Fiscal policy refers to the government's use of taxation and spending to influence the overall economy. It involves decisions related to government revenue and expenditure, aimed at achieving specific economic objectives such as promoting economic growth, reducing unemployment, or controlling inflation.
On the other hand, fiscal responsibility refers to the government's commitment to maintaining a sustainable fiscal position. It involves making prudent decisions regarding government borrowing, debt management, and ensuring that government spending is within sustainable limits. Fiscal responsibility focuses on long-term financial stability and avoiding excessive debt burdens that could negatively impact the economy.