key term - Fiscal policy

Definition

Fiscal policy involves government actions to influence a country's economy through taxation and spending decisions. It is used to achieve macroeconomic goals such as controlling inflation, managing unemployment, and fostering economic growth.

Related terms

Government Spending: Money expended by the government to pay for various public services, infrastructure projects, and social welfare programs.

Taxation:

The process by which governments finance their expenditure by imposing charges on citizens and corporate entities.

Macroeconomic Goals: Objectives that governments aim to achieve for a stable economy including sustainable growth, low unemployment, and low inflation