Fiscal Policy
977lt
particularly when Monetary Policy is less effective
Fiscal stimulus
Fiscal
tightening
To control Balance of
Payments International trade
EqualityEquity
redistribution of income
To correct market failures
Soundgovernmentfinances budgetdeficitsurplus
Provision ofpublic services
Defence
Improveproductivepotential
Governmentspending Tax revenue
stance ADI
expansionary
Budget deficit
G T multiplier
Governmentspending Tax revenue
Contraction stance ADI
Budget surplus
G T multiplier
, Governmentspending Tax revenue
Cyclicaldeficits
budget deficit dictated by
economic
cycle
Диета
Income Тах геление I
NICs I
VAT recent I
Duties I
Import duties 1
Unemployment benefits 1
Other healthcare I
spending eg
Automatic stabiliser flaring a boom to avoiddeep
recovery
recession
Fiscal
drag
more income tax revenue Less welfare benefits
Economy recovers
contraction stance ADgrowth slowsdown risk ofhysteresis
any
Structural deficits
deficit that caused deliberategovernment actions
is
by
deficit that exists during the full went
upto
not dictated by the economic cycle
977lt
particularly when Monetary Policy is less effective
Fiscal stimulus
Fiscal
tightening
To control Balance of
Payments International trade
EqualityEquity
redistribution of income
To correct market failures
Soundgovernmentfinances budgetdeficitsurplus
Provision ofpublic services
Defence
Improveproductivepotential
Governmentspending Tax revenue
stance ADI
expansionary
Budget deficit
G T multiplier
Governmentspending Tax revenue
Contraction stance ADI
Budget surplus
G T multiplier
, Governmentspending Tax revenue
Cyclicaldeficits
budget deficit dictated by
economic
cycle
Диета
Income Тах геление I
NICs I
VAT recent I
Duties I
Import duties 1
Unemployment benefits 1
Other healthcare I
spending eg
Automatic stabiliser flaring a boom to avoiddeep
recovery
recession
Fiscal
drag
more income tax revenue Less welfare benefits
Economy recovers
contraction stance ADgrowth slowsdown risk ofhysteresis
any
Structural deficits
deficit that caused deliberategovernment actions
is
by
deficit that exists during the full went
upto
not dictated by the economic cycle
