What is fiscal policy?

Question

What is fiscal policy?

Answer 1

Fiscal policy, taking the scope of budgetary policy, refers to government policy that attempts to influence the direction of the economy through changes in government taxes, or through some spending (fiscal allowances).

Answer 2

A plan for a period (fiscal) such as a year.

Answer 3

Means, the government action, oftern involving tax, that influence economic activity.