Overview
Fiscal policy plays a crucial role in shaping the economy through government spending and taxation. It aims to stabilize economic growth, control inflation, and reduce unemployment. By adjusting these levers, governments can influence overall economic activity and address issues of economic equity. ...
Key Terms
Example: Increasing taxes to fund public services.
Example: Progressive taxation aims to achieve economic equity.
Example: Higher earners pay a larger percentage of their income in taxes.
Example: Sales taxes that take a larger share of income from the poor.
Example: National defense and public parks.
Example: Food stamps and unemployment benefits.
Related Topics
Monetary Policy
The process by which the central bank manages the money supply to influence the economy.
intermediateIncome Inequality
The unequal distribution of income within a population, often analyzed in relation to economic equity.
intermediateSocial Justice
The concept of fair and just relations between individuals and society, often linked to economic equity.
advancedKey Concepts
Government SpendingTaxationIncome DistributionSocial Welfare