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Unit 11

Government and Fiscal policy

Demand management, focus on changing aggregate demand or shifting the aggregate demand curve in the AD-AS model, to achieve the goals of: 1- price stability, 2- full employment 3- economic growth 4- all
What are the government´s economy determinants? 1- goverment purchases or spending 2- transfer payments 3- taxes 4- the government budget balance 5- the national debt
What are the two types of discretionary side policies? 1- fiscal policy 2- monetary policy 3- both
What are the discretionary fiscal policy tools? 1- changes in goverment purchases 2- changes in business taxes 3- changes in income taxes 4- changes in transfer payments 5- all
What is the non-discretionary policy? 1- Aggregate demand is influenced by automatic stabilisers, 2- Aggregate demand is not influenced by automatic stablisers.
Created by: mariavarela