question archive Explain the role of fiscal policy in influencing the economy

Explain the role of fiscal policy in influencing the economy

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Explain the role of fiscal policy in influencing the economy. Could the UK government successfully keep GDP near to full employment, or should market forces be left to operate without state intervention? Use at least one economic model (such as the Keynesian cross, or AS/AD, or IS/LM) to analyse this topic. you are required to include Keynesian and neoclassical economics theories (you can also consider a third economic school of thought, if you wish). You are not required to distinguish between specific approaches (such as new Keynesian versus neo-Keynesian; or New Classical versus Neo-Classical). Include diagrams to clarify economic theories; to increase your mark, you can create your own diagrams (rather than copy them from a website). You should also use suitable economic data from websites such as https://www.data.gov.uk/ to create charts or tables in Excel, to assess trends or other patterns in data.

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