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Fiscal policies play a vital role in shaping a country’s economic stability and growth. The three main functions include resource allocation, where government spending prioritizes critical sectors; income redistribution, which reduces economic inequality through taxation and welfare programs; and economic stabilization, aimed at managing inflation, unemployment, and economic cycles. By implementing the types of fiscal policy, such as expansionary or contractionary policies, governments can respond effectively to economic challenges. Jaro Education emphasizes understanding these fiscal tools to enhance decision-making and economic expertise. Mastering fiscal policies equips individuals with the knowledge to navigate complex economic landscapes effectively.

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