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Fiscal policy is the government’s use of government spending and taxes to influence the economy. For this task, you will choose one tool of fiscal policy—either government spending or taxes—and complete the activities below.

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Taxes correspond to an essential fiscal policy tool for a government to supplement its revenue and implement economic actions for the development of a nation.

What are taxes?

It is a tax that individuals and corporations are required to pay to the government to be used for the development of the economy. It is used for the development of public policies, as well as for the payment of debts and public services.

Therefore, managing a nation's fiscal policy will be essential for its social and economic development.

Find out more about taxes here:

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