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Sion is on a bumpy path. During the second quarter of 2002, real GDP grew at an anemic annual rate of barely over 1%, well below market expectations. Unemployment, after rising throughout 2001, has leveled off but has yet to show signs of declining.Adding some gloom to the general outlook, the stock market continued to drop through most of July and has remained volatile. This sluggish economic performance comes despite substantial stimulus from both monetary and fiscal policy. Since January 2001.

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Fiscal policy influences the economy through government spending and taxation, typically to promote strong and sustainable growth and reduce poverty.

The tools of fiscal policy are government spending and taxes (or transfers, which are like “negative taxes”).

Expansionary fiscal policy is intended to boost growth to a healthy economic level, which is required during the business cycle's contractionary period. The government seeks to reduce unemployment, raise consumer demand, and stop the recession.

Answer and Explanation: Option (a) Raising taxes in order to cover a budget deficit is correct. The Fiscal Policy is controlled by the government to influence the economy by using taxation or government expenditure.

The government's use of taxes, spending, and transfer payments to promote economic growth and stability. Fights unemployment and inflation, but not simultaneously.

Fiscal policy is usually set by the executive and legislative functions. Monetary policy is generally determined by central banks. Governments adjust fiscal policy by changing levels of taxation and spending in order to stimulate (or discourage) consumer spending and maintain healthy levels of employment and inflation.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Content Takedown Policy
Bug Bounty Program
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
+1 833 426 79 33
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232