is that policy which is made by government
government expenditure, supply
of money and taxes
policy is great equipment
in the hand
of any country
to make better tax system and to manage
the public loan and
of Fiscal Policy
three possible types of fiscal policy: neutral ,
expansionary and contractionary.
definitions of these types are as follows:
- A neutral stance of fiscal policy implies a balanced economy .
results in a large tax revenue
spending is fully funded by tax revenue and overall
outcome has a neutral effect
on the level of economic activity
- An expansionary stance of fiscal policy involves government spending exceeding tax revenue.