Econimics Question #3?
Answer:
Describe what the government is aiming at with fiscal policy and then how the fiscal policy influences production, employment, and price levels.
So since fiscal policy is the deliberate and thought out change in government spending, government borrowing or taxes to stimulate or slow down the economy describe how that influences the production, employment, and price levels.
It means that you should describe what government wants to achieve when it taxes, borrows, or spends, and what it actually achieves.
Austrian Economics (which is the only economics that isn't loaded with fallacies) shows that government usually achieves the exact opposite of what it wants to achieve.
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