Fiscal Policy
Free CFA Level I lesson in Economics. 13 min read, ~1,956 words.
Monetary policy = central bank, interest rates, money supply. Fiscal policy = government, taxes and spending. Fiscal policy works through aggregate demand: G up or T down expands demand; G down or T up contracts it. Fiscal objectives are public goods, redistribution, stabilization, and long-run growth. Tools: spending (transfers, current...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- fiscal policy
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