4.2.5.1 Fiscal Policy (AQA A-Level Economics Teaching PowerPoint)

This AQA Economics teaching Powerpoint covers many aspects of fiscal policy.

Fiscal policy is the use of government spending and taxation to influence the economy. In simple terms, it involves the government deciding how much money to spend and how much to collect in taxes in order to influence economic growth, employment, inflation, and other macroeconomic goals.Some examples of fiscal policy tools include:

• Tax cuts or increases: To encourage consumer spending or investment, the government may lower taxes or increase them to raise revenue.
• Government spending: Increased spending on infrastructure, social programs, or defense can stimulate economic growth and create jobs.
• Deficit spending: The government may borrow money to finance spending, which can stimulate the economy in the short term, but it can also lead to higher debt levels in the long run.