Fiscal policy essay hsc

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Economics comprises of two major parts, Macroeconomics and Microeconomics. Today we will be discussing the policies in macroeconomics that help fix problems that are prevalent in the economy. Macroeconomics is the study about the whole economy as a whole such as economic output, unemployment, inflation, interest rates, and government policies. Macroeconomics is all about decision making based on economic data.

Fiscal Policy Essay

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Fiscal policy is one of the tools often used to realise these goals and create financial stability. There are two ways in which fiscal policy can be implemented, either a contractionary fiscal policy, or an expansionary fiscal policy, which I will explore in this assignment. The aim of an expansionary fiscal policy is to raise expenditure, whereby economic output and household income will also increase. Thus, if the government decides to make changes in its taxation such as discounting corporate taxes, the aggregate demand curve will shift. In addition to that, money spent on public services and welfares will increase government spending which will affect aggregate demand as well. Fiscal Policy Brooks defines that fiscal policy is adjusting government revenue and spending in order to influence the direction of the economy and meet the economic goals of the country. The two main tools in fiscal policy are taxes and expenditure.

Essay: Fiscal policy

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Economics is content heavy, so make sure you pay attention in class and take as many notes as possible to properly understand the theory. The understanding of the theory enables you to complete a range of past paper questions. The completion of past paper questions is essential to develop your understanding as well as familiarise yourself with the style of questions that you can expect during the trials and the HSC. Follow what is happening in the media and also do your own research. Short answers and essays rely heavily on having current statistics and data.
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