Hey there! Sign in to join this conversationNew here? Join for free
x Turn on thread page Beta
    • Thread Starter
    Offline

    2
    ReputationRep:
    Hi guys I'm in need of a little starting off help I've been set a 25 mark essay and need some help to organise ideas really. The essay is titled 'comment upon the effectiveness of using fiscal policy to meet the government's macroeconomic objectives'
    So far I've explained the key points in the title but I'm struggling to think of any real structure for the rest of the essay. Does anyone have any suggestions? I was thinking maybe explaining the time lag of fiscal policy making it hard to assess the effectiveness in my first paragraph but I'm not sure
    Offline

    13
    ReputationRep:
    (Original post by Xzerzes)
    Hi guys I'm in need of a little starting off help I've been set a 25 mark essay and need some help to organise ideas really. The essay is titled 'comment upon the effectiveness of using fiscal policy to meet the government's macroeconomic objectives'
    So far I've explained the key points in the title but I'm struggling to think of any real structure for the rest of the essay. Does anyone have any suggestions? I was thinking maybe explaining the time lag of fiscal policy making it hard to assess the effectiveness in my first paragraph but I'm not sure
    Start by defining fiscal policy and analysing how it works, eg. expansionary fiscal policy increases AD by reducing taxation and/or increasing government spending.

    Show an outward shift in AD, explain how this might affect growth, unemployment, inflation, current account etc.
    Possibly show an outward shift in LRAS, arising from possible government spending on training/education or reduced corporation tax.

    Advantages of FP:
    - Govt spending can be directed towards specific areas of need
    - Can be used to increase consumption of merit goods & decrease consumption of demerit goods
    - Redistribution of income through progressive taxes
    - etc.

    Disadvantages:
    - Time lag
    - Govt spending can be inflexible, hard to suddenly withdraw funds from half completed schools/hospitals/whatever
    - Possibility of unexpected reactions
    - Expansionary FP will increase budget deficit
    - etc.

    Overall, the effectiveness of FP depends upon:
    - Initial level of economic activity, ie. output gap
    - Level of change in tax/spending
    - Multiplier
    - Whether it's offset by any other factors

    Then conclude.

    That's obviously quite a general structure but it's the sort of things you should be looking to include. There'll be more advantages and disadvantages that I can't be bothered to list here, include them too if you want/if you have time.
    • Thread Starter
    Offline

    2
    ReputationRep:
    Thank you very very very much your reply was the best I could have hoped for! I should have this totally sorted now
    Offline

    13
    ReputationRep:
    (Original post by Xzerzes)
    Thank you very very very much your reply was the best I could have hoped for! I should have this totally sorted now
    No problem, glad it helped let me know if you need anything else
 
 
 
Poll
Do you like carrot cake?
Help with your A-levels

All the essentials

The adventure begins mug

Student life: what to expect

What it's really like going to uni

Rosette

Essay expert

Learn to write like a pro with our ultimate essay guide.

Uni match

Uni match

Our tool will help you find the perfect course for you

Study planner

Create a study plan

Get your head around what you need to do and when with the study planner tool.

Study planner

Resources by subject

Everything from mind maps to class notes.

Hands typing

Degrees without fees

Discover more about degree-level apprenticeships.

A student doing homework

Study tips from A* students

Students who got top grades in their A-levels share their secrets

Study help links and info

Can you help? Study help unanswered threadsRules and posting guidelines

Groups associated with this forum:

View associated groups

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.