Learn how the fiscal multiplier impacts GDP, understand its formula, and see real-world examples of fiscal policies affecting national income and economic recovery.

Since the Global Financial Crisis, fiscal policy in advanced economies has become more “active” – that is, increasingly unresponsive to rising debt levels. This paper explores tensions between active ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Yarilet Perez is an experienced multimedia ...

A grand bargain, a compromise to avert the so-called fiscal cliff, could all come down to one word: revenue. It's now widely agreed that steering away from the cliff — the combination of spending cuts ...