Aggregate demand
Savings and investment
Tax rates
Income distribution
The business cycle
The distribution of resources and money supply
In general, the goal of fiscal policy is to encourage long-term economic expansion. When assessing the state of an economy as a whole, economists focus on a few important metrics.
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1
The rate of inflation, which should ideally be kept between 2-3%, is used to gauge price stability.
2
Ideally, the Gross Domestic Product (GDP) growth rate should be between 2-3%.
3
Based on the unemployment rate, which economists often attempt to keep between 4 and 5%.