Economics in Papua New Guinea
1. What is fiscal policy? The use of the government’s tax and spending polices in an effort to influence the behavior of such macro variable as GDP and total employment. The GDP means G-gross, D- domestic, P- product . What are the functions of the fiscal policy in Papua New Guinea? The following points outline for the fiscal policy of economics in Papua New Guinea. 1.The government spending and taxation to influence the economy 2.Control employment and increase economic activities 3.Decreasing income tax increases disposable income, increase consumption and stimulates the economy 4.Income tax is progressive while company profit tax is proportional 5.The promotion of research into Papua New Guinea society and economy 6.The undertaking research into social, political and economic problems The purposes of the fiscal policy in Papua New Guinea? The use of government spending and taxation to influence the economy. Government typically use fiscal po...