Enhance Your Learning with Economics - Fiscal Policy Flash Cards for quick learning
The use of government spending and taxation to influence the economy.
A policy that involves increasing government spending and/or reducing taxes to stimulate economic growth.
A policy that involves decreasing government spending and/or increasing taxes to slow down economic growth and control inflation.
The amount of money spent by the government on goods, services, and infrastructure.
The process of levying and collecting taxes from individuals and businesses to fund government activities.
When government spending exceeds government revenue in a given period, resulting in a shortfall.
When government revenue exceeds government spending in a given period, resulting in excess funds.
The various instruments and measures used by the government to implement fiscal policy, such as changes in tax rates and government spending levels.
The total demand for goods and services in an economy at a given time.
An increase in the production and consumption of goods and services in an economy over time.
A sustained increase in the general price level of goods and services in an economy over time.
The state of being without a job, actively seeking employment, and available to work.
The way in which a nation's total income is distributed among its population.
The application and implementation of fiscal policy by governments to achieve desired economic outcomes.
The difficulties and obstacles faced by policymakers in formulating and implementing effective fiscal policy.
Government programs and policies that automatically adjust spending and taxation in response to changes in the economy, helping to stabilize it.
Deliberate changes in government spending and taxation undertaken by policymakers to stabilize the economy.
A situation where increased government borrowing and spending leads to a decrease in private investment.
A theoretical curve that illustrates the relationship between tax rates and tax revenue, suggesting that there is an optimal tax rate that maximizes revenue.
The idea that an initial increase in spending or investment can lead to larger overall increases in economic activity.
The total amount of money owed by the government to its creditors, accumulated through budget deficits over time.
A fiscal policy that can be maintained over the long term without causing excessive debt or economic instability.
The relationship between fiscal policy and the fluctuations in economic activity known as business cycles.
The interaction and coordination between fiscal policy (government spending and taxation) and monetary policy (control of the money supply and interest rates) to achieve economic stability.
The impact of fiscal policy on a country's trade balance and competitiveness in the global market.
The role of fiscal policy in addressing income inequality and redistributing wealth in society.
The influence of fiscal policy on the factors that contribute to sustained economic growth, such as investment, innovation, and productivity.
The role of fiscal policy in controlling inflation and maintaining stable prices in the economy.
The impact of fiscal policy on job creation, unemployment rates, and labor market conditions.
The effect of fiscal policy on consumer spending patterns, saving rates, and overall economic activity.
The influence of fiscal policy on private sector investment decisions and capital formation.
The relationship between fiscal policy and the accumulation of government debt, including its implications for future generations.
The role of political factors and public opinion in shaping fiscal policy decisions and outcomes.
The aim of fiscal policy to promote stable economic conditions, minimize fluctuations, and prevent economic crises.
The goal of fiscal policy to allocate resources efficiently, promote productivity, and maximize overall economic welfare.
The consideration of social objectives and the well-being of society in the formulation and implementation of fiscal policy.
The integration of environmental concerns and sustainability goals into fiscal policy decisions and practices.
The impact of fiscal policy on technological innovation, research and development, and the adoption of new technologies.
The recognition of the interconnectedness of national economies and the need for coordinated fiscal policy actions in a globalized world.
The ability of an economy to withstand and recover from external shocks and economic downturns through effective fiscal policy measures.
The consideration of fairness and equity in the distribution of economic benefits and burdens through fiscal policy decisions.
The role of fiscal policy in promoting regional economic integration, trade agreements, and economic cooperation among nations.
The aim of fiscal policy to maintain a stable and sound financial system, prevent banking crises, and ensure the smooth functioning of financial markets.
The role of fiscal policy in promoting sustainable economic development, reducing poverty, and improving living standards in developing countries.
The use of fiscal measures to provide incentives for desired economic behaviors, such as investment, entrepreneurship, and innovation.
The use of economic models and data analysis to predict the impact of fiscal policy measures on the economy and make informed policy decisions.