Fiscal policy w5

Fiscal Policy is the useopf government spending and tax policies to influence economic conditions, especially on a macroeconomic scale. The policies and regulations within the fiscal policy control a multitude of things including but not limited to economic equilibrium, inflation, and unemployment. The government implements this policy in different steps and stages of the economy, but usually begins with either increasing or decreasing spending within the government to accommodate the necessary functions for economic stability. After this step has been overviewed and a plan has been implemented, the government then begins to investigate taxation of the citizens. The government will decide whether it is necessary to either lower taxes or increase taxes to meet the needs of the economy. During the Great Recession in 2008-2009 the government implemented fiscal policies to save the economy and find an equilibrium. During this time the government increased their spending to create more jobs and income for citizens that would stimulate the economy, as well as implementing tax cuts to increase spending income for citizens. We have most recently seen these fiscal policies and many more during the Covid-19 pandemic. During this time the government sent out unemployment, stimulus checks, increased tax deductions and breaks, as well as passed grants and funding for housing and education breaks. The government increased pay and funding for essential workers and provided relief for small businesses through grants and loans. Many of these fiscal policies are still being implemented and disbursed although the pandemic occurred a few years ago, like the P- EBT has recently been updated and begun to give families relief for food necessities.
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