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Economics : Homework Helps Here .

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Nanavel:
Hello everyone ,

I opened this topic for Economics . Here we will help each other in Economics Assignments and Homeworks and all the reference materials and Sites that we need . It is better then Opening multiple Thread asking for Economics help . One Economic thread will help everyone find everything they need in it and prevent the repeat of the Thread for the same questions .

Nanavel:

ima_shah2002 >> your Answer to the Question of : What is Fiscal boost and Fiscal Drag ?



Fiscal Boost : I am not sure

Fiscal Drag : Fiscal drag refers to the effect inflation has on average tax rates. If tax allowances are not increased in line with inflation, and people's incomes increase with inflation then they will be moved up into higher tax bands and so their tax bill will go up. However, they are actually worse off because inflation has cancelled out their pay rise and their tax bill is higher. The only person that is better off is the Chancellor as he is getting more tax and hasn't had to increase tax rates. Chancellors have been known to use this as a subtle means to raise more tax revenue. To maintain average tax rates, allowances should be increased by the amount of inflation each year.

astarmathsandphysics:
Fiscal boost is when the government spends more money.

cashem'up:
thanks guys....hey astar can u be more specific abt what is fiscal boost

astarmathsandphysics:
The government have the economy a fiscal boost here this year by spending billions to try to get the economy growing. I think they bought toilet paper with it.

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