Monday 9 March 2009

Fiscal policies

Fiscal policy is the taxation and spending decisions of a government.And the key aim of Fiscal Policy is is to influence aggregate demand.Also there are two way can make the AD curve shift to the right , one is reduce tax .Because If government reduce tax people will have more disposable income so people will have more money to spend that mean the consume will be more then AD will increase.And the other one is increasing government spending .And we all know that AD= C+I + G+( X-M), so government spending is a component of aggregate demand .So if G increase so AD will increase too.

So is If the government's spending more then the taxation.AD shift to the right our Economy is growing and less unemployed people are there.But also the inflation will be higher and it is a budget deficit for a government.But still it is a injection .It's good for our Economic.

Until now In our Economic we just have learned that much And I know there still are a lot of thing maybe I haven't mention yet because I haven't read through that yet... so ~~ But today I have done a lot of things already... And what am I feeling now ? I feel not to bad even this is tired but I can feel achievable compare with I sit in front of the computer and play computer games.That's good enough for me because at the least I am giving a big challenge to myself .And I will keep doing this every evening.And at the last I will be successful I believe that. But what I am really want to say is to be a very good student is really hard. But still keep trying ....

And and by the way I had posted a comment in that blog called Economics and Business First-timer but I just can't see the comment.. = =..I don't know why , but really I did it ...

3 comments:

chris sivewright said...

Are you keeping to your programme?

Also:

"...inflation will be higher and it is a budget deficit for a government.But still it is a injection .It's good for our Economic.
"

1. Why is there inflation?
2. Why is that good for the economy?

SIYI said...

Yes today I did A lot about ppc and little Economic Cycle and also I should know what is central problem of scarcity... So I have done all the programme for today. and it will be continue happen tomorrow...

CHEE said...

SIYI..jia you...gan ba dei