Meaning of Fiscal Policy In Public Finance - SS2 Economics Past Questions and Answers - page 1
What is fiscal policy?
A tool used by governments to manage the economy through the use of taxes, government spending, and borrowing.
A tool used by businesses to manage their finances.
A tool used by households to manage their finances.
What is the purpose of fiscal policy?
To stimulate the economy.
To slow down the economy.
Both a and b
Which of the following fiscal policies can stimulate economic activity?
Decreasing government spending.
Increasing taxes.
Increasing government spending.
What can fiscal policy be used to address?
Income inequality.
Inflation.
Unemployment.
All of the above.
(Through the decrease and increase of taxes and government spending fiscal policy can address various macroeconomic problems such as income inequality, inflation, economic downturns, and unemployment)
What is public finance?
The study of how governments collect revenue, spend money, and manage debt.
The study of how businesses manage their finances.
The study of how households manage their finances.
Name three tools used by governments in fiscal policy.
Taxes, government spending, and borrowing.
List any three that fiscal policy can be used to address.
Income inequality, inflation, and unemployment.