THEME 2 - MACROECONOMICS - Mr Steeds

Question 1

tight fiscal policy

Answer 1

• raise tax
• cut government spending

Question 2

loose fiscal policy

Answer 2

• cut tax
• raise government spending

Question 3

what is the debt

Answer 3

all the deficits added together

Question 4

indirect taxes

Answer 4

• tax on products and transactions

Question 5

automatic stabilisers

Answer 5

• changes in tax revenues and state spending arises automatically as economy moves through trade cycle

Question 6

discretionary fiscal changes

Answer 6

• deliberate changes in tax and gov spending

Question 7

monetarist economists

Answer 7

believe that gov spending and tax chnages can only have a temperate effect on ad