Flashcards
9 ~ Fiscal Policy and Supply-Side Policies
Cards in this deck (12)
- 1What does fiscal policy involve?G
T
gov borrowing
to affect the level of AD, GDP and U - 2What do changes in FP affect?AD
AD - 3What is an expansionary FP?↑G
↓T - 4What is a contractionary FP?↓G
↑T - 5When is an expansionary FP used?to stimulate AD
- 6When is contractionary FP used?to reduce the size of the budget deficit
- 7What are direct taxes?taxes levied on Y, profit and wealth
the burden of T cannot be passed on - 8What are indirect taxes?T on spending
producers may pass on an indirect T - 9What does it mean when an economy is running a budget deficit?G>T
- 10What are SSPs?policies aimed improving the quality and quantity of output
- 11What are examples of SSPs? (7)subsidies
privatisation
↑competition
T on Y
immigration
NMW
education + training - 12What are the problems with SSPs? (5)v big time lags
big opportunity cost
needs to be sufficient D
low PL could be cancelled out by PME
very expensive
Information
- Description
- AS - Level Economics (Macroeconomics) Flashcards on 9 ~ Fiscal Policy and Supply-Side Policies, created by Tara Pugal on 23/04/2016.
- Created by
- Tara Pugal
- Views
- 66
- Tags
- Rating