The demand side fiscal policy....what is this?

Question

I kind of know and i kind of dont know, i think the fiscal policy how much money the government is making and spending but what is the demand side of this???? please this is confusing meeeeee

Answer 1

fiscal policy is what the government use to intervene in the economy. For example, taxes and subsidies are fiscal policies because they have to be approved by congress and the white house. Because fiscal policy seeks to change the economy by influencing market demand, it is called demand side fiscal policy. For example, a tax increase would make consumers demand less good because they have less money to spend.