Respuesta :
It generates demand for products and services using government spending.
How does advertising impact budgetary policy?
Government spending and taxation are changed as a result of fiscal policy, which affects overall demand. These factors have an impact on household employment and income, which in turn has an impact on consumer spending and investment. Monetary policy has an impact on the amount of money in an economy, which in turn has an impact on interest rates and inflation.
What effects does the total demand of fiscal policy have?
A fiscal policy that directly increases aggregate demand through an increase in government spending is referred to as expansionary or "loose". Conversely, fiscal policy is frequently viewed as contractionary or "tight" if it reduces demand by reducing spending.
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