Fiscal Wiscal

Question 1

Whats fiscal policy

Answer 1

Use of gov spending , taxation and borrowing to affect the level and grwoth of Agrrgate demand , output and jobs

Question 2

Progressive tax

Answer 2

Marginal rate of tax increase as income rise , eg income tax

Question 3

Proportinal tax

Answer 3

The marinal rate of tax same for eveyone

Question 4

Regressive tax

Answer 4

Marginal rate falls as income rises , excise dutties on ciggs