Chapter 37 - 39 Flashcards Preview

Economics IGCSE > Chapter 37 - 39 > Flashcards

Flashcards in Chapter 37 - 39 Deck (12)
Loading flashcards...
1
Q

Budget

A

the government’s spending and revenue plans for the next year.

2
Q

Budget Deficit

A

the amount by which government spending exceeds government revenue

3
Q

Budget Surplus

A

the amount by which government revenue exceeds government spending

4
Q

Contractionary Fiscal Policy

A

fiscal measures designed to dampen demand in the economy

5
Q

Direct Taxes

A

taxes levied on the income earned by firms and individuals

6
Q

Expansionary Fiscal Policy

A

fiscal measures designed to stimulate demand in the economy

7
Q

Fiscal Policy

A

decisions about government spending, taxation and levels of borrowing which affect aggregate demand in the economy.

8
Q

Base Rate

A

the rate of interest set by the MPC which influences all other rates in the economy

9
Q

Money Supply

A

the amount of money circulating in the economy

10
Q

Monetary Policy

A

the use of interest rates and the money supple to control aggregate demand in the economy

11
Q

Rate of Interest

A

the price of money

12
Q

Supply Side Policies

A

government measures designed to increase aggregate supply in the economy.