Question

The definition of fiscal policy as "Changes in government expenditure and taxation designed to influence the pattern and level of activity" was given by:

Options

• Prof. Gardner Ackley

• Otto Eckstein

• Prof. Dalton

• Harvey and Johnson

Answer 1

Harvey and Johnson defined fiscal policy as changes in government expenditure and taxation designed to influence the pattern and level of activity. Their definition emphasises both the pattern (composition) and the level of economic activity.