Fiscal policy refers to the use of government spending and taxation to influence the economy. This includes decisions on how much money the government should spend on goods and services, as well as how much revenue it should collect through taxes. Fiscal policy is often used to achieve specific economic goals, such as stimulating economic growth, reducing unemployment, or controlling inflation. It is a key tool in the government's economic policy toolkit, along with monetary policy. The effectiveness of fiscal policy depends on factors such as the size of the government's budget, the level of government debt, and the overall economic conditions. Researchers in this area study how fiscal policy decisions impact the economy, its effectiveness in achieving desired outcomes, and the implications for public finances and long-term economic stability.