Gunjan Asked a Question
March 12, 2021 2:16 pmpts 30 pts
pinent f under developed countries Types of Fiscal Policy Fiscal Policy Discretionary Policy Non-Discretionary Policy 1. Discretionary Policy Discretionary policy mean deliberate change in the government expenditure and taxes to influence the levet o td output and prices. Fiscal policy generally aims at managing aggregate demand for goods and serviCEs. It may generally take three forms () Changing Taxes with Government Expenditure Constant: When taxes are reduced, while keeping government expenditure unchanged, they increase the disposable income of houscholds and businesses, further increasing private spending. But the amount of increase will depend on of whom the taxes are cut, to what extent, and on whether the taxpayers regard the cut temporary or permanent. (ii) Changing Government Expenditure with Taxes Constant: T'he second method is more useful in conteslt deflationary tendencies. When the government increases its expenditure on goOds and services. keeping taxes constat stant, aggregate demand goes up by the full anmount of the increase in government spending Contact Us: Website: www odun
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  • Priya gulani
    Discretionary fiscal policy is a policy action aimed at stabilizing the business cycle. Examples include changes in government spending and changes in taxes levied. Nondiscretiona...
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  • Rucha rajesh shingvekar
    Discretionary fiscal policy is a policy action aimed at stabilizing the business cycle. ... Nondiscretionary fiscal policy is automatic which include the automatic stabilizers of i...
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    yh dubara btana smjh nhi aai
  • Rucha rajesh shingvekar thankyou
    Fiscal Policy is changing the governments budget to influence aggregate demand. i.e. changing taxes and spending. Discretionary fiscal policy means the government make changes to t...
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    Rucha rajesh shingvekar
    Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy...
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