Unit 3.6 · Demand Management (Fiscal Policy)

Fiscal Policy Basics

AO2

Syllabus Requirement

Includes sources of government revenue and types of government expenditure.

Assessment Objectives
AO2Application and Analysis

Summary

Fiscal policy involves the government's use of taxation and spending to affect economic activity. It aims to achieve macroeconomic goals such as reducing unemployment, promoting sustainable growth, and maintaining price stability.