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 macroeconomic objectives such as economic growth, price stability, and full employment.
On the other hand, fiscal stimulus is a specific component of fiscal policy that involves implementing measures to boost economic activity during times of economic downturn or recession. It typically involves increasing government spending or reducing taxes to stimulate consumer and business spending, thereby increasing aggregate demand and stimulating economic growth. Fiscal stimulus is a temporary and targeted measure used to counteract economic downturns, while fiscal policy encompasses a broader range of long-term economic management strategies.