3 Types of Fiscal Policy
There are three types of fiscal policy; neutral, expansionary, and contractionary.
Fiscal policy looks at how government spends and brings in money through taxation and government spending. It studies the effects that these variables can have on the economy. For example, how higher taxes might affect government revenue and the wider health of the economy.
There are three types of fiscal policy; neutral, expansionary, and contractionary.
A budget deficit is where we spend more than we receive.
A budget surplus is where government brings in more money than it spends.
Budget Surplus: Definition, Pros, Cons & Effects Read More »
Expansionary fiscal policy refers to a policy that seeks to grow the economy through fiscal stimulus.
Expansionary Fiscal Policy: Definition, Examples & Effects Read More »
A trade deficit occurs when a nation imports more goods than it exports. In other words, a nation buys more from other countries, than it sells to other countries.
Fiscal policy refers to governments spending and taxation. So how much income it has coming in through taxes, and how much it has going out through spending.
Subsidies are government grants given to private companies, usually to keep prices down.