Flashcards in Role of Government Deck (9)
What is the difference between normative and positive economic statements?
what should be implemented vs. how it works
What is a public good?
A good available to everybody that is payed by the government
What is a budget?
estimated amount of money available to spend
What are taxes?
money paid to the government for social services
What are the different types of taxes?
income, property, sale
What is fiscal policy?
the way government adjusts spending to influence ecomonmy
What is monetary policy?
controls supply of money to promote growth within the country
When is expansionary policy used?
closed recessionary gap to stimulate economy