Government Spenfint

Question 1

Budget defict

Answer 1

A situation where the government spending in a given period is greater than thr government receipts. Government will need to borrow.

Question 2

Budget surplus

Answer 2

A situation where the government receives more in tax revenue than it spends.

Question 3

Automatic stabiliser

Answer 3

When a change in one variable automatically leads to an opposing change in another.

Question 4

Discretionary fiscal policy

Answer 4

A conscious decision by the government to change its fiscal policy . By cutting income tax or reducing government spending on defence.

Question 5

Inter generational equity

Answer 5

Fairness between different generations