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Essay text:
Among these tools are the fiscal policy and monetary policy. This report discusses the fiscal policy and why the governments use this too to stabilize the economy and encounter the economic fluctuations.
Definition
Fiscal policy is a macroeconomic tool used by the government through the control of taxation and government spending in an effort to affect the business cycle and to achieve economic objectives of price stability, full employment and economic growth. By imposing taxes, the government receives revenue from the public which means the assets have been transferred from the public to the government...
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