Fiscal Policy and Budget Outcomes (HSC SSCE Economics): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
ShowHide
Practise the cards
10 cards from this deck
Budget surplus condition
Budget surplus condition
(revenue exceeds expenditure)
Budget deficit condition
Budget deficit condition
(expenditure exceeds revenue)
Balanced budget condition
Balanced budget condition
(expenditure equals revenue)
Budget surplus fiscal effect
Budget surplus fiscal effect
Contractionary (withdraws funds from economy)
Budget deficit fiscal effect
Budget deficit fiscal effect
Expansionary (injects funds into economy)
Best budget sustainability measure
Best budget sustainability measure
Net operating balance
Discretionary budget changes
Discretionary budget changes
Deliberate government policy decisions (structural)
Two main automatic stabilisers
Two main automatic stabilisers
Unemployment benefits & progressive income tax
Expansionary stance actions
Expansionary stance actions
Reduce tax and/or increase spending
Budget stance depends on
Budget stance depends on
Change in position, not absolute level