3.5 fiscal policy Flashcards
1
Q
government spending
A
the total amount of money spent by the government in a fiscal year (april - april)
2
Q
direct tax
A
tax on wealth and income directly
3
Q
indirect tax
A
tax on spending and consumption
4
Q
government budget
A
expenditure and revenue of UK
5
Q
fiscal policy
A
a policy that uses taxation and government spending to achieve government objectives
6
Q
multiplier effect
A
a process by which the original change in incomes in the economy lead to a total change of incomes in the economy
7
Q
progressive tax
A
higher percentage of tax taken from people with higher wages
8
Q
A
