What are the objectives of macroeconomic policy?
The objectives of macroeconomic policy should include economic stabilization, distributional equity, broad social goals such as income security, education, and universal health care, and the management of economic growth.
What are the objectives fiscal policy?
Fiscal policy refers to how government receives and spends money. Fiscal policy can be seen from two perspectives – taxation and spending. There are six main objectives of fiscal policy – full employment, economic growth, control debt, control inflation, re-distribution, and polictical.
How the monetary policy and fiscal policy meet the macroeconomic objectives in an economy?
When the Fed restricts the money supply, interest rates rise, the inflation rate drops, and economic growth slows. By expanding the money supply, the Fed stimulates economic growth. The government also uses fiscal policy— changes in levels of taxation and spending—to control the economy.
What are the objectives of fiscal policy in India?
Fiscal policy of India always has two objectives, namely improving the growth performance of the economy and ensuring social justice to the people.
What is the main objective of fiscal policy in India?
Main objectives of Fiscal Policy in India: Economic growth: Fiscal policy helps maintain the economy’s growth rate so that certain economic goals can be achieved. Price stability: It controls the price level of the country so that when the inflation is too high, prices can be regulated.
What is the objective of macroeconomic policy Mcq?
Macroeconomic policy is concerned with the operation of the economy as a whole. In broad terms, the goal of macroeconomic policy is to provide a stable economic environment that is conducive to fostering strong and sustainable economic growth, on which the creation of jobs, wealth and improved living standards depend.
What are the main objectives of monetary policy and fiscal policy?
The overarching goal of both monetary and fiscal policy is normally the creation of an economic environment where growth is stable and positive and inflation is stable and low.
What is fiscal policy what are the objectives and instruments of fiscal policy?
The tools of fiscal policy are taxes, expenditure, public debt and a nation’s budget. During inflation, fiscal policy aims at controlling excessive aggregate spending, while during depression it aims at making up the deficiency in effective demand for raising the economy from the depths of depression.
What are the main objectives of macroeconomic policy?
The main policy instruments available to meet macroeconomic objectives are Monetary policy –changes to interest rates, the supply of money and credit and also changes to the value of the exchange rate Fiscal policy – changes to government taxation, government spending and borrowing Supply-side policies designed to make markets work more efficiently
How are monetary policy and fiscal policy related?
Monetary policy –changes to interest rates, the supply of money and credit and also changes to the value of the exchange rate Fiscal policy – changes to government taxation, government spending and borrowing Supply-side policies designed to make markets work more efficiently.
How is fiscal policy an instrument of economic development?
He also considered fiscal policy as an instrument of economic development and advocated changes in it in order to strengthen effective demand to bring about a rise in income, output and employment. Later economists continued to uphold fiscal policy as an instrument of stabilization and growth.
Which is the most important objective of fiscal policy?
Fiscal policy has to be such as will maintain a reasonably stable general price level benefiting all sections of the society. (d) The most important objective of fiscal policy is the promotion and maintenance of full employment; because through it all other objectives are automatically achieved.