Fiscal policy is a term used to describe how authorities adjust a country's tax rates and spending levels.

This allows them to monitor and ultimately influence a country's economy by determining how public funds are collected and utilized.

In other words, fiscal policies are used in conjunction with monetary policies to change the direction of the economy and maintain its stability. They can also stabilize a country's growth rate and cause positive effects in employment rates and other socioeconomic indices.

Examples of fiscal policies are increased government spending and tax cuts, which are aimed at increasing aggregate demand while at the same time reducing the budget surplus.

The implementation of fiscal policy impacts different people in an economy. The procedure is based on the premise that when governments increase or decrease public spending and tax levels, they can affect macroeconomic productivity.

The effect can be beneficial to the economy in several aspects. For example, by increasing employment levels, controlling inflation, and maintaining a relatively healthy value of money. However, it can also have negative effects if not implemented properly - especially in countries with high levels of corruption.