## Macroeconomics: How Fiscal Policy Reshapes Economies
Fiscal **policy** is much more than numbers in a budget. It is the mechanism through which governments control the economic destiny of their nations. When lawmakers decide to increase or decrease taxes, or modify levels of public spending, they are directly impacting the productivity and financial health of an entire country.
### The Engine of Fiscal Policy: Taxes and Public Spending
At the heart of any effective **fiscal policy** are two key variables: taxes and public spending. Taxes determine how many resources the government has to in