Fiscal Policy Flashcards
1
Q
Government spending
A
The total amount of money spent by the government in a given period of time
2
Q
Government revenue
A
The amount of money the government receives
3
Q
Direct tax
A
A tax on income and wealth
4
Q
Indirect tax
A
A tax on spending which is imposed on the producer but may then be passed onto consumers through an increase in price
5
Q
Balanced budget
A
Taxation is equal to government spending
6
Q
Budget surplus
A
Is when taxation is greater than government spending
7
Q
Budget deficit
A
Is when government spending is greater than taxation
8
Q
Fiscal policy
A
A policy that aims to control the economy through the use of government revenue and spending
9
Q
Progressive taxes
A
Taxes that take a greater percentage of tax the higher the income
