Fiscal Policy

3. Automatic stablisers are known as _________________ Fiscal Policy
9. A budget outcome where government spending exceeds revenue in a financial year.
10. Money received by the government, mainly from taxation & mostly individual income tax.
11. purposeful actions by the government such as changing the rate of income tax is known as this type of Fiscal Policy
12. The use of government spending and taxation to influence levels of AD in the economy.

1. Payments by the government to individuals without expecting goods or services in return (e.g. pensions, unemployment benefits)is an example of this
2. The ‘automatic’ changes to the govt revenue & expenditure that affect economic activity is also known as being the ______________ influence on the budget outcome
4. stance of Fiscal Policy that involves the government reducing spending or increasing taxes (or both) to slow down economic activity, typically to control inflation or reduce a budget deficit. This policy aims to decrease aggregate demand and stabilise the economy when it is overheating.
5. stance of Fiscal Policy that occurs when the government increases spending or decreases taxes (or both) to stimulate economic activity, usually during periods of slow growth or high unemployment. The goal is to boost aggregate demand, encourage investment and consumption, and support job creation
6. The total amount the government aims to receive and plans to spend over a financial year.
7. The budget outcome when government revenue is greater than expenditure.
8. Purposeful changes the govt makes to revenue and expenditure is considered to have this type of influence on the budget