& are time lags changes in interest rates and AD Income tax affects income e.g. income tax raises Changes in Fiscal Policy Fiscal Policy income refers to changes in and should government spending, taxation and boost borrowing A budget deficit is a net injection of aggregate demand A Economic events in in a the world currency economy International factors such as the imports exchange rate and dearer foreign income and exports cheaper -
& are time lags changes in interest rates and AD Changes in Fiscal Policy Fiscal Policy refers to changes in government spending, taxation and borrowing Income tax affects income e.g. income tax raises income and should boost A budget deficit is a net injection of aggregate demand Economic events in the world economy International factors such as the exchange rate and foreign income A in a currency imports dearer and exports cheaper -