Fiscal Policy and Supply-Side Policies (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does fiscal policy primarily involve?
What does fiscal policy primarily involve?
Gov spending & taxation to achieve aims
When does a budget deficit occur?
When does a budget deficit occur?
When
What is the key difference between a budget deficit and a balance of payments deficit?
What is the key difference between a budget deficit and a balance of payments deficit?
Budget: gov finances; BoP: external trade
In the AD equation, what does represent?
In the AD equation, what does represent?
Government spending
What happens to the AD curve with expansionary fiscal policy?
What happens to the AD curve with expansionary fiscal policy?
Shifts right, raising output & prices
What is the crowding out effect?
What is the crowding out effect?
Public spending displaces private spending
What is the main aim of supply-side fiscal policy?
What is the main aim of supply-side fiscal policy?
Shift LRAS right, boost productive capacity
During which period was Keynesian fiscal policy dominant in the UK?
During which period was Keynesian fiscal policy dominant in the UK?
1950s to 1979
What is the traditional red box used for on UK Budget Day?
What is the traditional red box used for on UK Budget Day?
Carrying Chancellor's speech for 100+ yrs
When is crowding out most severe?
When is crowding out most severe?
At full employment with no spare capacity