Fiscal And Supply Side Pols

Question 1

Automatic stabilisers

Answer 1

Parts of fiscal policy that automatically react to changes of the economic cycle

Question 2

Balanced budget

Answer 2

Achieved when government expenditure equals government revenue

Question 3

Contractionary fiscal policy

Answer 3

Fiscal policy implemented to decrease AD

Question 4

Corruption

Answer 4

Government failure through abuse of power

Question 5

Cyclical budget deficit

Answer 5

Pert of the budget that tends to rise in economic surplus and fall in economic booms

Question 6

Debt sustainability

Answer 6

The ability to manage debt so that it doesn’t impede growth or stability

Question 7

Deficit financing

Answer 7

Borrowing to finance a budget deficit

Question 8

Deindustrialisation

Answer 8

Decline in the manufacturing industry of an economy

Question 9

Direct tax

Answer 9

A tax on income and wealth

Question 10

Discretionary fiscal policy

Answer 10

Altering taxation and government spending as a response to an economic cycle stimulus

Question 11

Dumping

Answer 11

When a producer exports products at a price lower than the prices charged in their home country

Question 12

Expansionary fiscal policy

Answer 12

Fiscal policy implemented to increase AD

Question 13

Fiscal policy

Answer 13

Use of government spending and taxation to achieve macroeconomic objectives

Question 14

Fiscal stimulus

Answer 14

Changing taxation and government spending to boost demand and output

Question 15

Brain drain

Answer 15

Net outward migration of skilled/ young workers

Question 16

hypothecation

Answer 16

When tax revenue is saved to be used for a specific purpose

Question 17

Indirect tax

Answer 17

A tax on expenditure

Question 18

Progressive taxation

Answer 18

Taxes where a larger proportion of income is paid as income rises

Question 19

Taxes

Answer 19

where the same proportion of income is paid as income rises

Question 20

Reflationary policies

Answer 20

Policies to increase AD, with intent to increase real output and employment

Question 21

Regressive taxation

Answer 21

Taxes where a smaller proportion of income is paid as income rises

Question 22

Structural budget deficit

Answer 22

Part of the budget that is unaffected by the economic cycle, and is more dependent on the decisions of the government

Question 23

Supply side policies

Answer 23

Use of interventionist policies to encourage efficient market, thus achieving macroeconomic objectives

Question 24

Supply side policies

Answer 24

Use of interventionist policies to encourage efficient market, thus achieving macroeconomic objectives