The employment of government spending as well as taxation to impact the economy was known as fiscal policy.
Fiscal policy is used by governments to achieve robust and sustained growth and then to decrease poverty.
Inflation, full employment, as well as economic growth even though determined by GDP are the three major aims of fiscal policy as well as indicators of a healthy economy.
Fiscal policy objectives include stimulating demand, increasing output, creating jobs, increasing GDP, avoiding recessions, controlling inflation, and stabilizing economic growth.
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