Key Terms F582 - Chapter 6

Fiscal Policy
the taxation and spending decisions of a government
1 of 17
Monetary Policy
central bank and/or government decisions on the rate of interest, the money supply and the exchange rate
2 of 17
Supply-side Policies
policies designed to increase aggregate supply by improving the efficiency of labour and product markets
3 of 17
Reflationary
of policy measures designed to increase aggregate demand
4 of 17
Deflationary
of policy measures designed to reduce aggregate demand
5 of 17
Discretionary Fiscal Policy
deliberate changes in government spending and taxation designed to influence aggregate demand
6 of 17
Automatic Stabilisers
forms of government spending and taxation that change automatically to offset fluctuations in economic activity
7 of 17
Economic Cycle
the tendency for economic activity to fluctuate outside its trend growth rate, moving from a high level of economic activity (boom) to negative economic growth (recession)
8 of 17
Progressive Tax
a tax that takes a higher percentage from the income of the rich
9 of 17
Regressive Tax
a tax that takes a greater percentage from the income of the poor
10 of 17
Recession
a fall in real GDP over a period of six months or more
11 of 17
Human Capital
education, training and experience that a worker, or group of workers, possesses
12 of 17
Tariff
a tax on imports
13 of 17
Quota
a limit on imports
14 of 17
Occupational Immobility of Labour
difficulty in moving from one type of a job to another
15 of 17
Protectionism
the protection of domestic industries from foreign competition
16 of 17
Voluntary Export Restraint (VER)
a limit placed on imports from a country with the agreement of that country's government
17 of 17

Other cards in this set

Card 2

Front

Monetary Policy

Back

central bank and/or government decisions on the rate of interest, the money supply and the exchange rate

Card 3

Front

Supply-side Policies

Back

Preview of the front of card 3

Card 4

Front

Reflationary

Back

Preview of the front of card 4

Card 5

Front

Deflationary

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all The Application of Macroeconomic Policy Instruments and the International Economy resources »