Public finance studies government's role in the economy, while fiscal policy influences the economy through spending and taxation. Fiscal policy aims to stabilize fluctuations, promote growth, ensure stability, achieve employment, and reduce inequality.
Public finance is a field of economics that focuses on the role of government in the economy, encompassing areas like budgeting, tax collection, and government spending. Fiscal policy involves government decisions on spending and taxation to influence the economy's performance. Key objectives of fiscal policy include stabilizing economic fluctuations, promoting economic growth, ensuring price stability, achieving full employment, and reducing income inequality.
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