Question

Give a well detailed explanation of current fiscal policy and explain the difference between classical and keynesian in economics

Answer 1

Current fiscal policy is referred to as the utilization of government spending or taxation to influence an economy. If the government decides how goods and services are to be purchased, the shift payments it distributes, and the taxes collected are connected in fiscal policy.

Explanation:

Difference between classical and keynesian in economics:

Classical economic refers to full-employment in the employment level while displaying how the economy can return to, or tends to sustain whereas keynesian economic holds the unemployment as usual state of in economy and important government intervention is needed if employment target is to be reached.