Fiscal Measures
Fiscal measures refer to the government's use of taxation and spending policies to influence the economy. These measures can include changes in tax rates, government spending on public services, and investment in infrastructure. By adjusting these factors, the government aims to stimulate economic growth, control inflation, and manage unemployment levels.
Governments often implement fiscal measures during economic downturns or periods of growth. For example, during a recession, a government might increase spending on social programs or reduce taxes to boost consumer spending. Conversely, during a booming economy, it may raise taxes or cut spending to prevent overheating and inflation.