Fiscal Policy: Unemployment, inflation, risks
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What fiscal policies are required to fight unemployment? Which ones are required to fight inflation? What are some of the downside risks and potential problems involved when using fiscal policy?
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Response discusses Fiscal Policy: Unemployment, inflation, risks
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As per finpipe.com, "The term fiscal policy refers to the expenditure a government undertakes to provide goods and services and to the way in which the government finances these expenditures." Fiscal policy is an important instrument to regulate the economy.
Various objectives of Fiscal policy are:
1) Raising resources for the economy
2) Minimizing inequalities in the income of the public
3) Price stability
What fiscal policies are required to fight unemployment?
Expansionary Fiscal policy
This policy includes those measures which infuses the liquidity in the system to achieve higher ...
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