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Flashcards in Role of Government Deck (9)
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What is the difference between normative and positive economic statements?

what should be implemented vs. how it works

1

What is a public good?

A good available to everybody that is payed by the government
School, healthcare

2

What is a budget?

estimated amount of money available to spend

3

What are taxes?

money paid to the government for social services

4

What are the different types of taxes?

income, property, sale

5

What is fiscal policy?

the way government adjusts spending to influence ecomonmy

6

What is monetary policy?

controls supply of money to promote growth within the country

7

When is expansionary policy used?

closed recessionary gap to stimulate economy

8

When is contractionary policy used?

correct inflation rates