Aggregate Demand or aggregate expenditure is a macroeconomic term which refers to the overall level of employment, and thus the level of national income produced, in a countries economy during a given year.
Aggregate Supply is a macroeconomic term used to give a determination of the overall level of employment and national income.
Gross National Product (GNP) is an estimate of the total money value of all the final goods and services produced in a given one-year period by the factors of production owned by a particular country’s residents.
Gross Domestic Product (GDP) is an estimate of the total money value of all the final goods and services produced in a given one-year period using the factors of production located within a particular country’s borders.
Fiscal Policy is the part of government policy which is concerned with raising revenue through taxation and with deciding on the amounts and purposes of government spending.
Having a strong fiscal policy is very important for a successful economy. The term fiscal policy is defined by the government’s policy for taxing its citizens in order to raise revenue for any government spending. To put it simply, the government needs money to operate and the fiscal policy describes what will be done to raise that money and how the money will be allotted. The primary task is usually to help the citizens of the country by using the money for things such as education, health care, social security, the military, and many other programs that require funds. It becomes clear that without a sound fiscal policy, the country might have difficulty is having governmental success.
The primary objective of a country’s government (or at least what it should be) is the well being of its citizens. Even though the argument can be made of what truly is well being, many can agree that economic stability and safety are two major things that all people of the world desire. A government is...