Fiscal policy is really important for helping the economy grow in the UK. Here are a few ways it works:
Government Spending: When the government spends more money on things like building roads or hospitals, it can create jobs. This, in turn, helps the economy grow faster.
Taxation: When taxes are lower, people have more money to spend. For example, if the government lowers VAT, it can help shops sell more products.
Transfer Payments: Payments from the government, like welfare, give people extra money to spend. This is especially helpful during tough economic times.
In short, good fiscal policy can help the economy stay stable and grow by encouraging people to spend and invest.
Fiscal policy is really important for helping the economy grow in the UK. Here are a few ways it works:
Government Spending: When the government spends more money on things like building roads or hospitals, it can create jobs. This, in turn, helps the economy grow faster.
Taxation: When taxes are lower, people have more money to spend. For example, if the government lowers VAT, it can help shops sell more products.
Transfer Payments: Payments from the government, like welfare, give people extra money to spend. This is especially helpful during tough economic times.
In short, good fiscal policy can help the economy stay stable and grow by encouraging people to spend and invest.