Lesson 26 - Fiscal Terms Flashcards
1
Q
Balanced budget
A
Spending = Tax
2
Q
Budget deficit
A
Spending > Tax
3
Q
Budget surplus
A
Spending < Tax
4
Q
Crowding out
A
Higher govt spending causes equivalent fall in private spending + investment
5
Q
National debt
A
Amount of debt amassed by a nation
6
Q
Progressive tax
A
Proportion taxes rises as total taxable income rises
7
Q
Expansionary fiscal policy
A
Increase AD
Cut tax
Increase spending
8
Q
Deflationary fiscal policy
A
Lower AD
Cut spending
Increase tax
