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Explain how fiscal stimulus or restraint is achieved Solution Fiscal stimulus refers to factor s of fiscal policy that is changed in order to achieve desired result in economy\'s income or output. The aggregate demand fiscal stimulus are government expenditure, taxes, export and import policies and government transfers. If the governmnet feels the economy is in recession, it will reduce tax or increase expenditue as fiscal stimulus to meet the desired result of increased income..

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Explain how fiscal stimulus or restraint is achieved Solution Fiscal stimulus refers to factor s of fiscal policy that is changed in order to achieve desired result in economy's income or output. The aggregate demand fiscal stimulus are government expenditure, taxes, export and import policies and government transfers. If the governmnet feels the economy is in recession, it will reduce tax or increase expenditue as fiscal stimulus to meet the desired result of increased income.

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