Table of Contents
- 1 What are the theories of fiscal policy?
- 2 Who created the fiscal theory?
- 3 What are the major fiscal functions?
- 4 What is meant by fiscal expansion?
- 5 What is the role of fiscal policy in developed countries?
- 6 What is the meaning of fiscal administration?
- 7 Which of the following economic growth model represents the structural-change theory?
What are the theories of fiscal policy?
Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorized that government changes in the levels of taxation and government spending influences aggregate demand and the level of economic activity.
Who created the fiscal theory?
The Fiscal Theory of the Price Level — John H. Cochrane.
What are the objectives of fiscal policy?
Some of the key objectives of fiscal policy are economic stability, price stability, full employment, optimum allocation of resources, accelerating the rate of economic development, encouraging investment, and capital formation and growth.
What is the other name of fiscal policy?
What is another word for fiscal policy?
| taxes | assessment |
|---|---|
| taxation | revenue system |
| tax policy | tax system |
| tax collection | levying |
| laying taxes | monies |
What are the major fiscal functions?
Ans: There are four major fiscal functions of government; Allocation, Distribution, Economic Growth and Stabilization.
What is meant by fiscal expansion?
Introduction. Expansionary fiscal policy is when the government increases the money supply in the economy using budgetary instruments to either raise spending or cut taxes—both having more money to invest for customers and companies.
What is the scope of fiscal economics?
Fiscal policy deals with the taxation and expenditure decisions of the government. Some of the major instruments of fiscal policy are as follows: Budget, Taxation, Public Expenditure, public revenue, Public Debt, and Fiscal Deficit in the economy.
What is fiscal expansion?
What is the role of fiscal policy in developed countries?
Role of Fiscal Policy in Economic Development of Under Developed Countries! An anti-depression tax policy increases disposable income of the individual, promotes consumption and investment. This will ultimately result in increase in spending activities which in turn, increase effective demand of the people.
What is the meaning of fiscal administration?
Fiscal Administration is not difficult to define. In simple terms, fiscal administration is the branch of economics that deals with the revenues and expenditures and their impact on the economy. It is the manner of collecting something from the constituents and spending it also for the constituents.
What is structural change theory in economics?
Structural-change theory focuses on the mechanism by which under-developed economies transform their domestic economic structures from a heavy emphasis on traditional subsistence agriculture to a more modern, more urbanised, and more industrially diverse manufacturing and service economy.
What are the classical theories of economic development?
The classical theories of economic development consist of following four schools of thought: 1. Linear-stages-of-growth model: Theorists of the 1950s and 1960s viewed the process of development as a series of successive stages of economic growth through which all countries must pass.
Which of the following economic growth model represents the structural-change theory?
Following economic growth model represents the structural-change theory: (a) Lewis Theory of Development: It is one of the best-known early theoretical models of economic development that focused on the structural transformation of a primarily subsistence economy was that formulated by Noble-prize winner Sir W. Arthur Lewis in the mid 1950s.