How can government make the economy grow? How can government slow the economy down?
ok do you know what fiscal policies are?
kinda
ok tell me what you know about it
its used by government of taxes, spending, and changes in entitlements to keep the economy stable by affecting total demand for goods and services
thats what i have in my notes from class
How can government slow the economy down? Governments can use wage and price controls to fight inflation, but that can cause recession and job losses. Governments can also employ a contractionary monetary policy to fight inflation by reducing the money supply within an economy via decreased bond prices and increased interest rates. How can government make the economy grow? A government can try to influence the rate of economic growth through demand-side and supply-side policies, Expansionary fiscal policy – cutting taxes to increase disposable income and encourage spending. However, lower taxes will increase the budget deficit and will lead to higher borrowing.
yeah so fiscal policy is the use of government revenue collection and expenditure to influence a country's economy. this would include taxes. do you know what they can do with taxes to improve economy?
no
\(\color{#0cbb34}{\text{Originally Posted by}}\) @kenzie126 How can government slow the economy down? Governments can use wage and price controls to fight inflation, but that can cause recession and job losses. Governments can also employ a contractionary monetary policy to fight inflation by reducing the money supply within an economy via decreased bond prices and increased interest rates. How can government make the economy grow? A government can try to influence the rate of economic growth through demand-side and supply-side policies, Expansionary fiscal policy – cutting taxes to increase disposable income and encourage spending. However, lower taxes will increase the budget deficit and will lead to higher borrowing. \(\color{#0cbb34}{\text{End of Quote}}\)
so,decreasing government spending and keeping taxes the same OR decreasing taxes and keeping pending the same can reduce unemployment. does this make sense?
What is the Federal Reserve/Fed?
the central banking system of america
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