What fiscal policy is
What fiscal policy is
Fiscal policy is the use of government spending and taxation to influence macroeconomic outcomes such as growth, unemployment, inflation, and redistribution. It works mainly through Aggregate Demand because the government can change its own spending or households' disposable income.
Step-by-step lessons covering OCR A Level Economics Fiscal policy for A Level Economics. Each lesson works through exam-style questions in Component 01, Component 02 and Component 03 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.