Fiscal policy

Question 1

Define national debt.

Answer 1

National debt is the cumulative borrowing of successive Irish government.

Question 2

Define semi-state bodies.

Answer 2

Semi-state bodies are state owned organisations which are involved in the provision of goods and services (often vital) to the public.

Question 3

Define privatisation.

Answer 3

Privatisation is the sale of a semi-state body or public asset into private ownership.

Question 4

Define pump priming.

Answer 4

Pump priming is a deliberate government policy where government expenditure is increased to stimulate growth, job creation and a higher standard of living for all citizens.

Question 5

Define fiscal policy.

Answer 5

Fiscal policy is any action taken by the government that influences the timing, magnitude and structure of government revenue or expenditure in order to change the level of economic activity.