The macroeconomic policy is usually seen as having two components namely the fiscal policy and the monetary policy. Fiscal policy portrays the process of government funding, and the activities that are funded, including compiling a government budget. In order to uphold fiscal policy, the population as well as the individuals who purchase government debt instruments need to see it as predictable and capable of continuing with its debt payments. When government revenue sources are able to accommodate its expenses in terms of government programs, then the fiscal policy is observed to be prudent. The rationality of a fiscal policy is also observed when the government informs the population of its budget and the concept behind coming up with that kind of a budget, which is a regular process due to the auditing of government financial statements. The association between fiscal policy and monetary policy is that a nation’s currency would lose its value if its fiscal policy was observed to be unsustainable (Barro and Redlick 2009). According to Keynesian economists, unemployment can be easily managed by governments using fiscal policy, in that it can increase the demand in the economy. Employment is observed to be a product of the demand created in the economy due to private economic activity. When this does not create adequate opportunities, fiscal policy can increase the demand by stimulating economic activity, leading to increases employment opportunities. According to Keynes, fiscal policy is a strategy used to involve the government in dynamic organization of the economy. Keynes observed the need for the government to take an active role due to the prolonged cases of unemployment during the Great Depression. This respected economist came up with the idea that the government should create job opportunities without having to rely on the private sector (Keynes 2010). An active fiscal policy helps to stimulate an upward cycle of economic activity. This is made possible by the government’s use of taxing and spending policy. Ideally, the private sector invests in productive assets in order to maximize its output, which leads to a higher demand for labour, therefore creating employment. The stimulus generated from active fiscal policy is referred to as fiscal stimulus. Through fiscal stimulus, the government spends more, which results in higher income for private individuals. As a result, these individuals spend more through consumption, which increases the demand for commodities. Higher demand for commodities implies the need for increased supply, which is possible by the increased company output. In order for companies to increase their output, they need to hire more people, who then begin spending based on their income. This generates a cycle, due to increased demand for commodities imposed by the new spenders, which translate to more output, and more labourers. This is the upward cycle of economic activity, referred to as demand management (Ilzetzki 2010). Fiscal stimulus is made possible through deficit spending. This is because the government expenditure is higher than its revenue. Government fiscal policies are based on the methods used by governments to formulate fiscal stimulus