1. Fiscal Policies
Ngog Nliba Nguimbous

2. Outline Define Fiscal Policies Types of Fiscal policies
How these policies are applied
Tools of Fiscal Policies
Outline

3. What Are Fiscal Policies?
Any spending intentionally done by the government or taxation initiative that influences the Economy
The goal is to promote good economic growth
What Are Fiscal Policies?

4. Types of Fiscal Policies
Expansionary Fiscal policies
Contractionary Fiscal Policies
Types of Fiscal Policies

5. Expansionary Fiscal Policies
This form of fiscal polices in used when:
The economy is in recession
The economy in the contraction phase of the business cycle (recession)
The goal is to come out of a recession

6. How to apply an Expansionary Fiscal Policy?
The Federal Government can:
Spend more money
Cut taxes
The goal is to put money into consumer hands to promote spending and economic activities
This is will stimulate demand which will then get businesses running and generate jobs
How to apply an Expansionary Fiscal Policy?

7. Contractionary Fiscal Policies
Used to slow down the economy in order to stop inflation.
“ This is rarely used”
Long-term inflation can be detrimental to standard of living and the value of money.

8. How to apply contractionary fiscal policies
The Federal Government can:
Increase taxes
Cut spending
The idea is to reduce the amount of money in the consumers hands
How to apply contractionary fiscal policies

9. Tools of Fiscal Policies
Taxation includes:
Income, property, sales,
Government spending includes:
Subsidies, welfare programs, public work projects
Tools of Fiscal Policies

10. Questions
What action should the Federal Government take when the economy is in a recession?
What Actions should the Federal Government take when the economy could face possible inflation?

11. Sources
objectives-and-tools