Fiscal Policy And Macroeconomics

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“Macroeconomics” you may ask what Macroeconomics is? Well, it’s a particular way to look at the economy on a national scale it was born as a defense to analyze the market system so when things go wrong like in the Great Depression. Macroeconomic emphasizes two key government tool Monetary Policy and Fiscal Policy and so not to abandon the market system the government used the two policy to fix the economy. But today we will only focus on the Fiscal Policy in this essay. The topic of my paper is Economic-Fiscal Policy, and this topic is important to me because it affects me and my household. Now that I know how the fiscal policy work and have an understanding of it will help in my decision when voting for policymakers. As a citizen of this great country, I think we all must try to understand this policy because the…show more content…
Fiscal policy not fair or the same for everyone policymaker goal may be gear to a different class of people like the wealthy, so a taxes cut could affect the middle class which is the largest economic group until economic decline and rising taxation then this group could pay more taxes than the wealthy. When government adjust its spending and decide to build roads and bridges, it's giving a specific group of people works and more income. But this will not do much to increase aggregate employment levels. Then there #10. Society faces a short-run trade-off between inflation and unemployment. When inflation high the economy slows down the government use the fiscal policy to increase taxes, they can also decrease spending. In the long run, the negative effect of the fiscal policy causes a slow economy and high employment. The fiscal policy is used slowdown the economy and even out the business cycles. (“What Is Fiscal

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