Economic Development Of A Country

1027 Words Jul 26th, 2015 5 Pages
Today, many countries are involved. We cannot get rid of economic if we want to talk about development. The term economics can be defined as the science of how people and societies deal with their limited resources to satisfy their unlimited wants (Miller, 2012). The development of a country is based on many characteristics, such as the average income per capita, level of education, the death rate every year, the population health, and many more, but the most important characteristic is the economic activity of a country, therefore it should be promoted over any type of characteristics.
Fiscal policy is a very important part of the economic. Its foundation were laid after the great depression of 1929. Fiscal policy can be defined as action by which the leaders of a country regulate their spending level and tax rates in order to control and influence the economy of the country. The national goal of the government is to increase the level of employment, decrease the rate of unemployment, and keep the price steady. Taxes and spending are two important components of fiscal policy. The majority of the country’s revenue comes from taxes that will fund the government, and government spending will drive demand and economic growth. The government can use fiscal policy as a tool to control the economic either by expanding its growth or by contracting it, otherwise, it can cause an inflation. The aggregate demand is the sum of goods and services in an economy. One thing we need to…
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