what do you understand by fiscal policy
By Reem Heakal AAA |. Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy.It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.iscal policy could also dictate a decrease in government spending and thereby decrease the money in circulation. Of course, the possible negative effects of such a policy in the long run could be a sluggish economy and high unemployment levels.