Fiscal Policy Flashcards
1
Q
Who manages fiscal policy
A
Government
2
Q
What would the government do to get the economy out of recession using fiscal policy?
A
Decrease taxes and increase gov spending
3
Q
What is expansionary fiscal policy
A
When gov increases spending and decreases taxes, worsening the the budget deficit
4
Q
What is contractionary fiscal policy
A
When gov spending decreases and taxes increase. Which improves the budget deficit
5
Q
Types of taxes for fiscal policy
A
Income tax
benefits
corporation tax
Healthcare and education spending
VAT
Infrastructure
6
Q
What is a recession
A
When there has been two or more consecutive quarters of negative economic growth
