Question

What do you understand by fiscal policy?

What is fiscal policy?

What is meant by fiscal policy?

Answer 1

1. In order to accomplish different economic policy goals, the government employs the tools of taxation, public spending, and public borrowing, which is known as fiscal policy.
2. It is the policy that deals with how taxes, government spending, and public borrowing are used to affect employment, income, production, and the degree of economic activity in the economy.