Finance Flashcards
1
Q
Automatic stabilisers
A
Automatic changes to control economy
Eg less gov spending In surplus controls inflation
2
Q
Discretionary fiscal policy
A
Deliberate manipulation of tax and government spending is to influence economy
3
Q
Cyclical fiscal deficit
A
The size of the fiscal deficit is influenced by the state of the economy. In a boom tax revenue high spending on unemployment benefits low
4
Q
Actual deficit
A
Cyclical + structural deficit
5
Q
Structural deficit
A
Deficit which isn’t related to the economy. This part of fiscal deficit will not disappear when economy recovers
6
Q
Primary budget deficit
A
Doesn’t include debt interest
7
Q
Factors influencing size of deficit
A
Structural deficit
Cyclical deficit
U seen events
Debt interest
