Fiscal policy
- Created by: jacksie
- Created on: 30-04-21 10:50
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- Government spending
- Fiscal Policy
- taxation
- direct
- taxes on individuals or companies
- income, capital gains
- taxes on individuals or companies
- indirect
- taxes on goods and services
- VAT
- Business rates
- taxes on goods and services
- progressive
- as Income rise, Tax rise
- Regressive
- Tax increases as income falls
- poll tax
- Tax increases as income falls
- direct
- aggregate demand
- contractionary
- expansionary
- reduce output gap
- expansionary in negative
- increase trendline
- increase spending
- cyclical budget positions
- cyclical budget
- how the budget changes relative to the economy
- boom
- smaller deficit
- boom
- how the budget changes relative to the economy
- structural
- deficit regardless of the economy
- fiscal rule
- no greater than 3 percent
- Eurozone
- NAtional debt should not be larger than 60% of GDP
- high deficit
- borrow money to finance the deficit
- National Debt
- private investors worried
- interest rates rise of national debt
- this adds to the fiscal deficit
- may not be able to sell debt in financial markets
- have to ask IMF for a loan
- condition that reduce deficit
- default and not pay debts
- locked out of fiancail markets
- print money to finnance
- hyperinflation and fiscal dominace
- this adds to the fiscal deficit
- interest rates rise of national debt
- private investors worried
- National Debt
- borrow money to finance the deficit
- cyclical budget
- affect economic behaviour
- Untitled
- taxation
- capital spending
- spending on infrastructure
- bridges
- dams
- electricty
- bridges
- spending on infrastructure
- current spending
- spending on goods and service
- consumed in the short run
- teachers wages
- consumed in the short run
- transfer payments
- interest on national debt
- spending on goods and service
- Fiscal Policy
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