Fiscal Policy
The deliberate manipulation of the national budget to achieve desired social and economic aims is called fiscal policy.
Aims and Effects of Fiscal Policy
a) Maintain Stability
Recession or depression Deficit budget (Expansionary Fiscal Policy)
By lowering tax rates or increasing government expenditure or both would lead to an increase in purchasing power and aggregate demand.
Inflation Budget surplus (Contractionary Fiscal Policy)
By increasing taxes or reducing its expenditure would lead to a lowering of incomes and hence a fall in aggregate demand and prices levels.
b) Attain Equitable Income Distribution
The higher income group could be taxed at a progressive rate and the tax revenue could be used to promote the welfare of the lower income group. E.g. provision of free education, subsidised health care and low-cost housing and social welfare payments.
c) Achieve Balance of Payments Equilibrium
To discourage imports, the government could impose tariffs or tax incentives (e.g. lower corporate tax) could be given to export – oriented industries to encourage exports.
d) Achieve Economic Growth
Government expenditure incurred in improving quality of its factors of production ( e.g. training scheme to upgrade skills of workers ), its infrastructure, its health care facilities or in participating in certain economic activities, could lead to increases in production capacity and its national income.
Limitations of Fiscal Policy
a) Inflexible nature of government spending.
• Projects are normally long-term in nature
b) Major changes in taxation cannot be carried out at regular intervals.
c) Time lag involved between identification of problem and when measures take effect.
Email based fiscal policy assignment help - fiscal policy homework help at TutorsGlobe
Are you searching economics tutor for help with Fiscal Policy questions? Fiscal Policy topic is not easier to learn without external help? We at www.tutorsglobe.com offer finest service of economics homework help and economics homework help. Live tutors are available for 24x7 hours helping students in their Fiscal Policy related problems. We provide step by step Fiscal Policy question's answers with 100% plagiarism free content. We prepare quality content and notes for Fiscal Policy topic under economics theory and study material. These are avail for subscribed users and they can get advantages anytime.
Why TutorsGlobe for Fiscal Policy homework help
tutorsglobe.com polymorphism assignment help-homework help by online modern concept of natural selection tutors
tutorsglobe.com poverty and environment assignment help-homework help by online environmental science tutors
Theory and lecture notes of Non-deterministic Pushdown Automata all along with the key concepts of non-deterministic pushdown automata, Finite Automata with External Storage, Definition NPDA, Example of NPDA. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Non-deterministic Pushdown Automata.
tutorsglobe.com herspes simplex virus assignment help-homework help by online herpes viruses tutors
www.tutorsglobe.com offers Logic Programming Languages homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
tutorsglobe.com antigen processing assignment help-homework help by online carrier tutors
tutorsglobe.com solar energy assignment help-homework help by online energy crisis tutors
tutorsglobe.com mechanism of translocation assignment help-homework help by online translocation of solutes tutors
tutorsglobe.com energy level diagram for molecular orbitals assignment help-homework help by online molecular orbital theory tutors
Simple Harmonic Motion III tutorial all along with the key concepts of Damped Oscillations, Forced Oscillation and Resonance, Barton-s Pendulums, Energy Considerations, Phase, Physical Pendulum
Hydrometallurgy tutorial all along with the key concepts of meaning of hydrometallurgy, Processes of Hydrometallurgy and Advantages of Hydrometallurgy
Interpretation of a Mass Spectrum tutorial all along with the key concepts of Rules employed in the Interpretation of Mass Spectra, Mass Spectrum of Toluene and Examples of Mass Spectra Interpretation
Chemical Parameters in Water Chemistry and Analysis tutorial all along with the key concepts of Relevant Chemical Parameters of Water, Ionic Product of Water, Sources-Nature of Acidity, Significance of Acidity, Methods of Acidity Measurement
the chemical industry-an overview tutorial all along with the key concepts of complex characteristics of the chemical industry, what does the chemical industry produce and economic aspects
www.tutorsglobe.com offers linear programming problems graphical solution procedure assignment help - graphical solution procedure homework help and projects help in operation research and methodology with best live tutors assistance.
1948100
Questions Asked
3689
Tutors
1461920
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!