What Is Fiscal Policy?
What Is Fiscal Policy?
Fiscal policy is the use of government spending, taxation and the budget balance to influence aggregate demand, aggregate supply and the pattern of economic activity. In the UK, fiscal policy is set by HM Treasury and announced by the Chancellor in the annual Budget.
Step-by-step lessons covering AQA A Level Economics 2.5.1 Fiscal policy for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.