Notes>Macroeconomics>2.4 Fiscal policy

Definitions   Inflation is a persistent increase in the average price levels in the economy, usually measured through the calculation of consumer price index (CPI). Inflation results in a fall in the value of money. Demand-pull inflation is a persistent increase in...

The government budget Fiscal policy: the use of government spending and taxation to influence the level of economic activity. Sources of government revenue: primarily from taxes (direct and indirect), as well as from the sale of goods and services, profits from state...