Sierra Brown (Witt)
Econ101-M04
3/8/2022 1
M07-Paper-The Practical Economy
Fiscal policy pertains to how tax policies and government spending are used to directly
affect economic conditions. Some strengths of fiscal policy are that things like stimulus money
like that of which some families received during COVID, directly goes back into the economy
generally. This makes it a part of aggregate demand, causing an immediate effect on the
economy. Another strength of fiscal policy is that specific groups can be directly targeted by the
fiscal policies. They can target one specific area and focus on the growth of that area rather than
everywhere.
Some weaknesses of fiscal policy include the ability to decrease spending during periods
where the economy is growing rapidly. Sometimes when things are distributed out already, it is
hard to alter or change certain aspects of it all. Also, different issues with budgets etc. could
