Fiscal policy can have both macroeconomic and microeconomic functions
Fiscal policy — how governments tax and spend — works at two levels. It can steer the whole economy, and it can also change behaviour in specific markets.
Real World
The UK sugar levy (2018) is both microeconomic — deterring consumption of sugary drinks by firms like Coca-Cola — and macroeconomic, raising revenue that funds sports programmes to improve long-run productive capacity.
Exam Focus
Use separate paragraphs for macro and micro functions; blending them together loses marks on 'discuss' or 'assess' questions.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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