Economics GCSE
Fiscal Policy
What Fiscal Policy means in Economics GCSE, as defined for Pearson Edexcel.
Definition of Fiscal Policy
The use of government spending and taxation to influence the level of aggregate demand in the economy.
Topics that use Fiscal Policy
- Macroeconomic objectives (Pearson Edexcel GCSE)
- Relationships between objectives and policies (Pearson Edexcel GCSE)
Related terms
- Monetary Policy
- Phillips Curve
- Current Account Deficit
- Gross Domestic Product (GDP)
- Inflation
- Macroeconomic Objectives
- Supply-Side Policies
- Time Lags
Using Fiscal Policy in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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