Define the Term Fiscal Policy and Explain How Fiscal Policy

question 15

Essay

Define the term fiscal policy and explain how fiscal policy can be used in response to economic conditions.
D.Roosevelt in the 1930s.When there is an economic downturn,government can increase its spending or cut individual taxes as a means of stimulating consumer (demand-side)spending.When the economy is inflationary,the opposite actions can be taken as a way of dampening consumer demand.Fiscal policy can also take a supply-side form,as it did in part during the Reagan years.Supply-side emphasizes business production and investment.The economy can be stimulated through a reduction in taxes on firms and high-income individuals.

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Definitions:

Proteoglycans

Large molecules found in the extracellular matrix of animal tissue, consisting of a core protein and one or more covalently attached glycosaminoglycan (GAG) chains, involved in maintaining the structural integrity of tissues.

Cartilage

A flexible, strong tissue found in joints and other parts of the body, providing support and cushioning.

Elastin

A highly elastic protein in connective tissue that allows many tissues in the body to resume their shape after stretching or contracting.

Pluripotent Stem Cells

Cells that have the potential to differentiate into any type of cell in the body but not extraembryonic tissues.