Role of Government
Direct Taxation
What is a government levy imposed on income to raise revenue for government
Government Budget
What is the government's financial plans for generating revenue and expenditure?
Monetary Policy
What is the use of interest rates and the money supply to control AD in the economy?
Deregulation
What is a supply-side policy tool aimed at making markets competitive by removing barriers to entry?
Economies of scale
What are cost savings of large-scale operations?
indirect taxation
What is a government levy used to raise costs and reduce consumption of certain products?
Contractionary Fiscal Policy
What is a category of fiscal policy used to combat inflationary pressures by reducing the level of economic activity?
Expansionary monetary policy
What is a monetary policy that aims to boost aggregate demand by increasing the money supply by lowering interest rates?
Labour Market Reform
What is a supply-side policy tool that makes labour markets more flexible in order to increase aggregate supply?
Capital-intensive production
What is the production were capital is more prominently used over any other factor of production?
Subsidy
What is a financial support given by the government to reduce the costs of production for private sector firm
Progressive Taxation
What is a tax system that deducts a larger proportion of tax as the amount of personal income gets higher?
Quantitive easing
Hat is a form of monetary policy which involves releasing money directly into the economy via the central bank?
Privatisation
What is a supply-side policy tool that involves selling-off state-owned assets to make production more efficent and increase AS?
Average revenue
What is the typical price received from the sale of a good or service?
Trade Bloc
What is a free trade area where a group of nations can trade without having to meet extra-legal restrictions?
Budget Deficit
What occurs when government spending exceeds government revenue?
Money Supply
What is the total value of all the money in the economy at any particular time?
Redistribution of income
What is a supply-side tool designed that focuses on greater investment in education and training, along with greater incentives to work to improve the quatity and quality of labour?
Barriers to entry
What are the obstacles that prevent or make it difficult for firms to enter a market?
Regulation
What are the rules and laws that govern business activity in the economy?
National Debt
What is the total amount of money that a country's government has borrowed to fune expenditure?
Bonds
What are the debt securities or a promissory not to pay a lender at a later date?
Incentives to invest
What is a supply-side tool designed to stimulate firms to invest in the economy and increase AS leading to economic growth.
Equilibrium price
What is the price at which the demand curve for a product intersects the supply curve for the product?