I have to write a paper on macroeconomics with emphasis on fiscal policy that includes a description of what "conscious fiscal policy" means as well as describing how the tools are used to accomplish it.
I understand how automatic stabilzers work for fluctuations in the economy (unemployment compensation and progressive income taxes). While politicians are arguing over changes in law, taxes are being taken and expenditures are being made. I would think "conscious fiscal policy" is the economy is always affected by congressional actions even if it is past legislatures' decisions. If I am correct, what tools are used to accomplish conscious fiscal policy?
Fiscal policy refers to nation's policy relating to the government spending, taxing, borrowing and debt management. The main objectives of the fiscal policy are:
1. Mobilization of resources
2. Acceleration of the economic growth
3. To minimize the inequalities of Income and Wealth.
You are correct that "conscious fiscal policy" is the economy is always affected by congressional actions even if it is past legislatures' decisions.
There are three main constituents of the fiscal policy, these are:
1. Taxation policy
2. Public Expenditure policy
3. Public debt policy
All these constituents must work together to make ...
Demonstrate the main constituents of the fiscal policy.