Question

Okay, i have a 15 page (minimum) report to do on Fiscal Policy. I not asking you to write the report for me, but i just want some tips on ALL of the aspects that i should cover to make this report complete. please provide as much detail as possible.

this report must include :

Abstract

Introductuon

Body

Summary/Conclusion

Appendix

References.

Please address how i should go about executing this assignments

Answer 1

Fiscal policy deals with the taxation and expenditure decisions of the government. Some of the major instruments of fiscal policy are as follows: Budget, Taxation, Public Expenditure, public revenue, Public Debt, and Fiscal Deficit in the economy. Objective of fiscal policy are-   1.To maintain and achieve full employment. 2.To stabilize the price level. 3.To stabilize the growth rate of the economy.   4.To maintain equilibrium in the balance of payments.   5. To promote the economic development of underdeveloped countries.

The four main components of fiscal policy are---- (i) expenditure, budget reform (ii) revenue (particularly tax revenue) mobilization, (iii) deficit containment/ financing and (iv) determining fiscal transfers from higher to lower levels of government

The three main stances of fiscal policy are: A.Neutral fiscal policy, usually undertaken when an economy is in equilibrium. Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity. B.Expansionary fiscal policy, which involves government spending exceeding tax revenue, and is usually undertaken during recessions. C.Contractionary fiscal policy, which occurs when government spending is lower than tax revenue, and is usually undertaken to pay down government debt.