Help
Options
Term
fiscal policy
click to flip
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't know
Term
expansionary fiscal policy
Remaining cards (10)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Macro Chapter 16
| Term | Definition |
|---|---|
| fiscal policy | the use of government's budget tools, government spending, and taxes to influence the macroeconomy |
| expansionary fiscal policy | an increase in government spending or decrease in taxes to stimulate the economy toward expansion |
| contractionary fiscal policy | a decrease in government spending or increase in taxes to slow economic expansion |
| countercyclical fiscal policy | fiscal policy that seeks to counteract business cycle fluctuations |
| marginal propensity to consume (MPC) | the portion of additional income that is spent on consumption |
| spending multiplier | a number that tells us the total impact on spending from an initial change of a given amount |
| automatic stabilizers | government programs that automatically implement countercyclical fiscal policy in response to economic conditions |
| crowding-out | phenomenon occurring when private spending falls in response to increases in government spending |
| new classical critique | the assertion that increases in government spending and decreases in taxes are largely offset by increases in savings |
| supply-side fiscal policy | policy that involves the use of government spending and taxes to affect the production (supply) side of the economy |
| Laffer curve | an illustration of the relationship between tax rates and tax revenue |
Created by:
v.virgil
Popular Economics sets