13 Fiscal and supply-side policies Flashcards
1
Q
Fiscal policy
A
involves making deliberate changes in either government spending or taxation
2
Q
Progressive taxes
A
where those on higher incomes pay a higher proportion of their tax compared with those o lower incomes
3
Q
Regressive taxes
A
taxes that increase in relative size on lower income earning
4
Q
Proportional taxes
A
taxes are paid in equal proportions by everyone
5
Q
Supply-side policies
A
deliberate actions taken by the government that are designed to improve the LRAS of the economy
6
Q
Free-market supply side policies
A
- reducing direct tax
- cutting unemployment benefits
- reforming trade unions
- privatisation
- deregulation
- competition policy
- immigration
7
Q
Interventionist supply-side policies
A
- education
- training
- investment grants and incentives
- regional policy + infrastructure spending
- R and D
