Fiscal Policy

Question 1

Who manages fiscal policy

Answer 1

Government

Question 2

What would the government do to get the economy out of recession using fiscal policy?

Answer 2

Decrease taxes and increase gov spending, improving the budget deficit

Question 3

What is expansionary fiscal policy

Answer 3

When gov increases spending and decreases taxes, worsening the the budget deficit

Question 4

What is contractionary fiscal policy

Answer 4

When gov spending decreases and taxes increase. Which improves the budget deficit

Question 5

Types of taxes for fiscal policy

Answer 5

Income tax
benefits
corporation tax
Healthcare and education spending
VAT
Infrastructure