Fiscal Policy Free Essay, Term Paper and Book Report
Fiscal Policy Measures are the tools used by the Government to keep the economy moving toward its long-run potential output or income. Policies implemented by the Federal Government are essential in the economies Real Gross Domestic Product (GDP) and aggregate income of the economy. Some Federal Government Fiscal Policies are the income tax rate, government spending on educational programs for low-income students and Government spending on infrastructure. Government spending on infrastructure is divided into two parts. One part is communication, which includes radios, telephones, televisions and the internet. The other component is transportation that includes railways, highways, airports, ports and harbors.
These policies control inflation and have the potential to bring the economy out of a recession. Although the President makes decisions on the fiscal policy of the government, it is the government who essentially controls the outcome or the impact on the economy.
In the Fiscal Policy Simulation, some of the effects of the changes in the fiscal policies were controlling th......
Word Count: 1139
Page Count: 4.5 (250 words a page / double spaced)
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