The crowding out of private spending by government spending will be greater the

The greater the expenditure the Government eats the greater the economic growth.

Fiscal is used to explain the form of state revenue collected from the community and is considered by the government as income and then used as expenditures with programs to produce attainment of national income, production, and economy and is used as a balance tool in the economy.

Whereas fiscal policy is one of the factors that shape the country's economic direction.

3 Main Objectives of Fiscal Policy

1. Economic Growth

Achieving high levels of economic growth is one of the main objectives of fiscal policy. When economic growth develops rapidly, the business automatically will also grow, of course, this causes more income for people. Of course, this also increases the overall welfare of the nation.

Minimizing taxes is the government's way to advance economic growth through fiscal policy. Higher government spending can also spur economic growth.

2. Work

Opening high employment is one of the objectives of fiscal policy. Unemployed workers tend to have less money to spend than workers with jobs. This tends to hamper economic growth.

Minimize taxes aimed at promoting economic growth and business expansion. Simultaneously, this can encourage recruitment and increase employment.

3. Economic Stability

Stabilizing the economy by minimizing the impact of fluctuations is also the goal of fiscal policy in the economy. The country's economy tends to follow a pattern of global economic expansion, or "boom," followed by an economic slowdown, or "busts."

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Fiscal policy ,

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Class: High School

Subject: Business

Keyword: Effect of government personal expenditure.