Economics
Fiscal Policy is the economic term that illustrates governments" behavior in raising funds in order to be able to finance governments" spending. Money can be raised by taxes, borrowing, or by user fees on social services. Fiscal policy is used in order to influence the economic activity. It can include deficit spending to stimulate demand for domestic goods and services to increase (to decrease the unemployment rate) or trying to cut deficits or raise the budget surplus in case of high rate of inflation. If for instance the economy is experiencing the recession, which means that consumers are not spending as much as they used to, no new investments are done, many business lay off their workers as the demand for their goods or services is low. ...
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