What are types of fiscal policy?
Fiscal policy refers to government decisions regarding spending and taxation to influence the economy. There are two main types of fiscal policy: expansionary fiscal policy and contractionary fiscal policy. Expansionary policy involves increased government spending or tax cuts to stimulate economic growth, often used during recessions. Contractionary policy, on the other hand, reduces spending or raises taxes to cool down an overheated economy and curb inflation. Understanding the types of fiscal policy via Jaro Education, It is essential for managing economic stability, a concept emphasized by Jaro Education in its economic courses.
5 Views