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fiscal - Coggle Diagram
fiscal
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Manipulations by the government of its own expenditures and taxes in order to in luence the level of aggregate demand; it is a type of demand-side policy
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contractionary: decrease in government spending or an increase in taxes (or both). May be contrasted with expansionary fiscal policy.
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Supply-side policies are government policies that are either able to lower costs of production and increase production in the short run or able to increase the quality and/or quantity of the factors of production in the long run.
tax: discourage entrepreneurial activity and even encourage entrepreneurs to leave a country in search of more favorable tax climates. This will have negative effects on overall growth in the economy. The disincentive can reduce the quantity and quality of labor especially for high-income earners who would be taxed more heavily. Addiontaly, the loss of workforce is the loss of income and tax revenue for the government and ultimately loss of GDP that can hinder the economic growth of a country.
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