Flashcards: Understanding Fiscal Policy and Government Spending — 10 cards

Fiscal Policy — definition?

Government use of spending and taxes to influence the economy.

Fiscal Policy — definition?

Use of government spending and taxation to influence the economy.

Government Spending Components — examples?

Consumption, investment, transfer payments.

Government Spending — components?

Consumption, investment, and transfer payments.

Taxation Types — main categories?

Progressive, regressive, proportional, direct, indirect.

Taxation Types — examples?

Income tax (direct), sales tax (indirect).

Expansionary Policy — goal?

Stimulate economic growth during downturns.

Contractionary Policy — goal?

Reduce inflation or slow overheating.

Multiplier Effect — meaning?

Initial fiscal change causes greater economic impact.

Fiscal Policy Tools — examples?

Spending adjustments, taxation changes.