Question

Consider that many politicians are drawn to fiscal policy to grow the economy. Why might this be the case? (at least 10 sentences please)

Answer 1

Ans:-

• Fiscal policy is the government's choices about expenditure and taxing
• Fiscal policy play a vital role in the management of a country's economic growth.
• Fiscal policies ability influence a country's Gross Domestic Product (GDP).
• The main influence of fiscal growth is to increase the demand of goods and services.This increasing demand indicate to increase of products output and prices.
• The primary goal of fiscal policy is an underdeveloped nation is to assemble the economic resources in the private and public sector.
• Fiscal policy of a country give help to quicken the economic growth rate through increasing the investment rate.(public and private sector).
• The aim of fiscal policy in the under developed country is to make a high level of expenduture,that help to increase employment chances,usually these countries economies main problem is unemployment.
• Fiscal policy help to control inflationary services of the economy of a nation.
• Fiscal policy encourage ideal investment that helps economic growth and avoids uneconomic and unuseful investments.