--%>

Explain the about Fiscal Policy

Explain the about Fiscal Policy.

E

Expert

Verified

Fiscal Policy:

It means the variation in taxation and public expenditure programmed through the government to achieve exact objectives. Taxation assists to withdraw cash by the public. A raise in tax results in reduction of private disposable income. Taxes must be reduced during the depression will stimulate private sector. During boom period’s public expenditure must be curtailed, therefore cash flow can be decreased.

The fiscal policy of the government to regulate purchasing power to control business cycle is termed as counter the cyclical fiscal policy. Counter-cyclical fiscal policy within the boom period means a reduction in the public expenditure and a surplus budget and heavy taxes. The budget surplus can be used to eliminate earlier deficits. This means an increase in public expenditure, reduction within taxation and deficit budgeting throughout the depression. The monetary policy proves more effectual to control boom than to depression. An appropriate mix of fiscal and monetary policy will be more fruitful within the control of business cycles.

   Related Questions in Managerial Economics

  • Q : Introduction of the term Marginal

    Provide a brief introduction of the term Marginal Costing? And also write down the essential suppositions made by Marginal Costing?

  • Q : Elasticity of supply of labor by

    If the wage rate increases from $10 per hour to $25 per hour, then the elasticity of the supply of labor from this worker is roughly: (1) zero. (2) 7/15. (3) one. (4) minus 8/15.

    Q : Purely competitive labor markets in

    When all labor were fundamentally very similar then, in long run equilibrium for purely competitive labor markets as: (w) money wages will be equal for all workers. (x) the net advantages of working in various occupations will be equa

  • Q : Explain the steps for demand estimation

    Explain the steps for demand estimation.

  • Q : Requirement of equal paying amounts A

    A requirement of equal pay for workers along with equal amounts of education, responsibility, and experience is termed as the doctrine of: (1) marginal productivity. (2) non-exploitation. (3) central wage planning. (4) comparable wort

  • Q : Process of Automation Automation is the

    Automation is the process of: (1) adapting equipment which is safer for workers to operate. (2) kinetic engineering which smoothes flows of work on an assembly line. (3) scientific management of robotic factories. (4) substituting sophisticated machin

  • Q : What are the characteristics of a

    What are the characteristics of a business cycle?

  • Q : Costs of investing within human capital

    The costs of investing within human capital are probably to be borne by the employee when human capital a worker obtains “on the job” is: (1) general. (2) marginal. (3) precise. (4) generic. (5) specific.

    Q : Illustrates definition and meaning of

    Illustrates the definition and meaning of managerial economics?

  • Q : States the Demand Forecasting in terms

    States the Demand Forecasting in terms of production?