CHAPTER 82 MACROECONOMICS POLICIES IN A GLOBAL CONTEXT Flashcards
1
Q
Active or discreationary fiscal policy
A
The deliberate manipulation of government expenditure and taxes to influence the economy.
2
Q
Automatic or built in stabilizers
A
Mechanisms that reduce the impact of changes in the economy on national income.
3
Q
Demand management
A
Government use of fiscal or other policies to manipulate the level of aggregate demand in the economy.
4
Q
Direct control
A
A government measure that is imposed on the price or the quantity of a single product or factor of production.
5
Q
Fiscal austerity
A
Tax rises or government spending cuts designed to reduce a government budget deficit.
