Fisical Policy Flashcards
1
Q
National debt
A
Stock of outstanding debt owed by a country’s government
2
Q
Intergenerational equity
(Intergenerational inequity)
A
Fairness between different generations
(Those who receive benefit dont pay for it but later generation does)
3
Q
automatic stabiliser
A
Factor that changes in such a way as to automatically stabilise AD and the economic cycle
4
Q
What is the laffer curve ?
A
Increasing rate of a direct tax like income tax will initially cause rise in tax revenue before it peaks
Anything beyond this will decentivise work and as a resault work less earn less and pay less tax
5
Q
Basic rate of income tax?
A
20
6
Q
Higher rate of income tax
A
40
7
Q
Additional rate of income tax
A
45
