Fiscal Policy:

What is Fiscal Policy?

The classical economists were of the view that the economy automatically moves towards full employment in the long run. They ruled out the possibility of over production and hence unemployment in the long period. The role of the government in the economy, according to the classical economists, should be the minimal.

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Principles/Tools of Fiscal Policy:

The government uses various fiscal principles/tools in order to achieve rapid economic growth. The main tools of fiscal policy are grouped under two main heads: Continue reading.

Fiscal Policy With Reference to Underdeveloped Countries:

Fiscal policy also called budgetary policy is a powerful instrument in the hands of the government to intervene in the economy. Fiscal policy relates to a variety of measures which are broadly classified, as: (a) taxation, (b) public expenditure and (c) public borrowing. Continue reading.