Hufflepuff
Fiscal policy refers to
use of government spending and taxes to stabilize the economy
Economy is in recession, cutting taxes is not an option. what should government do?
increase the spending
economy is facing inflation and decreasing spending is not an option, what would you have government do?
increase tax rates.
Which option would stimulate economy more? A 10b tax cut or 10b worth of spending increase?
Two FISCAL tools government uses to alter the state of the economy?
Spending and revenue
Income left after paying taxes?
Disposable income
Corporate tax
Spending - 185B
Deficit or Surplus
corporate tax- 5000, excise duty- 3000, health and education- 4000
Deficit or Surplus?
Surplus
Amount paid to government school teachers?
C/I/G1/G2/X/M
G1
Purpose of Fiscal Policy?
Maintain stable prices
what is an excise duty?
tax imposed on selected locally produced goods such as petrol, LPG, beer, spirits, wine and tobacco.
Two tools government uses to correct the economy?
Monetary and Fiscal policy.
we shall soon find out
quota: limits on the amount of imports allowed
tariff: taxes on imported goods collected by the government.