Managing Fiscal Policy
Differences between fiscal and monetary policy, the multiplier effect, the difference between deficit and national debt, and what automatic stabilisers are.
Managing Fiscal Policy
Fiscal policy uses government spending and taxation to manage the economy. It is controlled by HM Treasury and the Chancellor of the Exchequer, unlike monetary policy which is independent.
True or false?
Fiscal policy uses government spending and taxation to manage the economy
Government Spending
Which term matches: "Increase spending or cut taxes to stimulate the economy"
What does "Contractionary fiscal policy" mean?
Type the term that means: "Increase spending or cut taxes to stimulate the economy"
Match each term in "Government Spending" to its meaning
Tap a term, then tap its matching definition.
Fill in the blank
______ — welfare, NHS, education, defence, infrastructure
The Effect of Government Borrowing
Which term matches: "Cumulative total of all past borrowing"
What does "Budget deficit" mean?
Fill in the blank
______ — Annual shortfall between spending and tax revenues
The Effect of Government Spending
What the exam tests
Differences between fiscal and monetary policy, the multiplier effect, the difference between deficit and national debt, and what automatic stabilisers are.
True or false?
Differences between fiscal and monetary policy, the multiplier effect, the difference between deficit and national debt, and what automatic stabilisers are