Unit 3.6 · Demand Management (Fiscal Policy)
Goals of Fiscal Policy
AO2
Syllabus Requirement
Targets include low inflation, low unemployment, economic growth, equity in income distribution, and external balance.
Assessment Objectives
AO2Application and Analysis
Summary
Fiscal policy aims to address macroeconomic challenges through government spending and taxation. Its primary goals include managing inflation, reducing unemployment, promoting economic growth, and stabilizing the business cycle. Understanding these goals is essential for analyzing how fiscal policy impacts the economy.