Summary Tool of macroeconomics_FISCAL POLICY

FISCAL POLICY




Tool of macroeconomics, involves tax and spending policy of the Government

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, OBJECTIVES OF FISCAL POLICY

Specific objectives of fiscal policy are economic growth and social stability.

The broad objectives of fiscal policies are:

To maintain and achieve full employment.
To mobilize country’s resources effectively
To reduce income and wealth inequalities
To achieve balanced regional development
To develop infrastructure of the country
To stabilize the price level.
To stabilize the growth rate of the economy.
 To maintain equilibrium in the balance of payments.

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, TYPES OF FISCAL POLICY


1) Automatic


2) Discretionary

 Expansionary Fiscal Policy/ Liberal fiscal policy
 Contractionary Fiscal Policy/ Strict Fiscal Policy




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