Fiscal policy

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defintion of fiscal policy
the taxation and spending decisons of a government
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what does expansionary fiscal do ?
decrease tax, increase government spending but government debt will increase
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What does contractionary fiscal do?
increase tax, decrease government spending then government debt will decrease
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definition of discretionary fiscal policy
the deliberate changes in government spending and taxation designed to influence AD
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definition of automatic stabilisers
forms of government spending and taxation that change automatically
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definition of fiscal drag
people's income being dragged into higher tax bands as a result of tax brackets
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Card 2

Front

what does expansionary fiscal do ?

Back

decrease tax, increase government spending but government debt will increase

Card 3

Front

What does contractionary fiscal do?

Back

Preview of the front of card 3

Card 4

Front

definition of discretionary fiscal policy

Back

Preview of the front of card 4

Card 5

Front

definition of automatic stabilisers

Back

Preview of the front of card 5
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