CURRENT FISCAL POLICY/ EFFECTS OF FISCAL POLICY
Italy Shelving Nuclear Means Fiat to Keep Paying Most for Power in Europe
By Alessandra Migliaccio - Apr 18, 2011 5:01 PM
Italy’s decision to shelve an 18 billion euro ($26 billion) reactor-building program after Japan’s nuclear crisis means companies from Fiat SpA (F) to Parmalat SpA (PLT) will keep paying Europe’s highest power prices.
In result of this happening Italy's spending will fall a huge depth and at the same time their unemployment rate will rise and their growth will also drop. This type of policy would be called a Contractionary Fiscal Policy, which keeps taxes increased causing unemployment rate to rise and their GDP will also fall.
By Alessandra Migliaccio - Apr 18, 2011 5:01 PM
Italy’s decision to shelve an 18 billion euro ($26 billion) reactor-building program after Japan’s nuclear crisis means companies from Fiat SpA (F) to Parmalat SpA (PLT) will keep paying Europe’s highest power prices.
In result of this happening Italy's spending will fall a huge depth and at the same time their unemployment rate will rise and their growth will also drop. This type of policy would be called a Contractionary Fiscal Policy, which keeps taxes increased causing unemployment rate to rise and their GDP will also fall.
http://www.bloomberg.com/news/2011-04-18/italy-shelving-nuclear-means-no-end-to-eu-s-highest-power-price.html
Aggregate Supply/ Demand for Fiscal Policy in Italy
