3. Major function of the government is to stabilize
the economy, prevent unemployment and
inflation.
Means by which government adjusts its
spending levels and tax rates to monitor and
influence a nation’s economy.
4. ‘’It is defined as the process of
shaping government taxation
and expenditure to achieve
desired economic and social
objectives’’
5. To achieve long run growth in
output, full employment and a
lower price level.
7. Tax from income, capital gains from
investment, property or sales revenue or
anything else. Taxes provide major
revenue sources that funds government,
the downside of taxes is that has less
income to spend themselves which
makes taxes very unpopular.
8. The government provides subsidized transfer
payments including welfare programs
contracts to perform all kinds of public works
and of course salaries to government
employees. The reason government spending is
a tool is that whatever or who ever receives the
fund has more money to spend thus driving
demand and economic growth.
9. To maintain and achieve full
employment
To stabilize the price level
To stabiles the growth rate of economy
To maintain equilibrium in the balance of
payment
To promote the economic development
of under developed countries
11. Increase in income of
suppliers and sellers
Increase in demand for capital
goods
12. Consumption increases
Increase in demand for consumer goods
Expansion in output
Generates employment and income
13.
14. The objectives of fiscal policy such as economic
development, price stability, social justice etc
can be achieved only if the tools of policy are
effectively used.
The success of fiscal policy depends upon
taking timely measures and their effective
administration during implementation.
