Macro Objectives
what is Price stability, low unemployment, economic growth
Define Fiscal policy
use of taxation and government spending to influence aggregate demand
define interest rates
the price of borrowing money and the reward for saving
Two examples of supply-side policy
What is education and training and promoting infrastructure development
Define tax avoidance
the legal bending of the rules of the tax system to pay less tax
What does price stability mean to the government?
What is low and stable inflation rate
define indirect and direct taxes
Two main tools of Monetary policy
what is interest rates and money supply/credit regulation
What is long term
define government exhaustive government spending
Definition of Inflation target and who sets it
what is the inflation rate set by the central bank they hope to achieve in the coming year
define budget surplus and budget deficit
what is budget surplus occurs when government revenue exceeds government spending while budget deficit is when government spending exceeds revenue
when is Contractionary Monetary Policy used and how it would be used
what is used to reduce demand or the growth of demand by a rise in interest rate or cut in money supply
what is technology can replace people
Where is Dr Frederick from?
What is Belgium
what is percentage above or below the target inflation rate
Define sin taxes and give two examples
taxes on products that is considered harmful to consumers examples are alcohol and tobacco
The main difference between monetary and fiscal policy?
what is one set by the central bank and the other set by the central government
What can be a problem with education and training?
What is might be teaching them skills not used in the future
What is the Balance of Payment
Why do governments avoid high rate of economic growth?
what is it could lead to demand increasing faster than supply leading to demand pull inflation
define automatic stabilizers and give an example
what is policies that are already in place that automatically stabilizes the economic for example unemployment welfare
One factor that can affect the effectiveness of monetary policy?
What is time lag, or how people/commercial banks respond
example of supply side apart from education&training, infrastructure, support for tech
what is cut in tax, trade union, encouragement of immigration
What is Taiwan