Government policy to raise income by additional taxes and allocation of expenditure is called ___________.

expenditure policy

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monetary policy

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income policy

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fiscal policy

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Solution

The correct option is D fiscal policy
Fiscal policy refers to the government policy which aims at raising income by additional taxes and allocation of expenditure so that the gap between government expenditure and government revenue is reduced or matched.

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Suppose that for a particular economy, investment is equal to 200, government purchases are 150, net taxes (that is lump-sum taxes minus transfers) is 100 and consumption is given by C = 100 + 0.75Y (a) What is the level of equilibrium income? (b) Calculate the value of the government expenditure multiplier and the tax multiplier. (c) If government expenditure increases by 200, find the change in equilibrium income.

Fiscal policy refers to the policy of government regarding taxation public expenditure and ____.

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Government policy to raise income by additional taxes and allocation of expenditure is called ___________.

The correct option is D fiscal policyFiscal policy refers to the government policy which aims at raising income by additional taxes and allocation of expenditure so that the gap between government expenditure and government revenue is reduced or matched.

The correct option is D fiscal policy
Fiscal policy refers to the government policy which aims at raising income by additional taxes and allocation of expenditure so that the gap between government expenditure and government revenue is reduced or matched.