Skip to main content
Indietro

Expansionary and Contractionary Fiscal Policy definitions

I pulsanti di controllo sono stati cambiati in modalità "navigazione".
1/15

Termini in questo insieme (15)

  • Fiscal Policy
    Government strategy involving changes in spending or taxation to influence aggregate demand and overall economic activity.
  • Aggregate Demand
    Total demand for goods and services in an economy, including consumption, investment, government purchases, and net exports.
  • Expansionary Fiscal Policy
    Government action of increasing spending or reducing taxes to stimulate economic growth during a recession.
  • Contractionary Fiscal Policy
    Government approach of decreasing spending or raising taxes to slow economic activity and control inflation.
  • Recession
    Economic period marked by real GDP falling below potential output, often accompanied by cyclical unemployment.
  • Inflation
    General rise in price levels, often occurring when aggregate demand exceeds the economy's long-run potential.
  • Long-Run Aggregate Supply
    Level of output an economy can produce when all resources are fully employed, representing potential GDP.
  • Short-Run Aggregate Supply
    Total production of goods and services in the economy at current prices, before full adjustment to equilibrium.
  • Potential GDP
    Maximum sustainable output an economy can achieve without causing inflationary pressures.
  • Government Spending
    Expenditures by the public sector on goods and services, directly influencing aggregate demand.
  • Taxes
    Compulsory payments to the government, affecting disposable income and consumption levels.
  • Disposable Income
    Household income available for spending and saving after taxes have been deducted.
  • Consumption
    Spending by households on goods and services, a major component of aggregate demand.
  • Overemployment
    Situation where more people are working than is sustainable, often due to excessive economic activity and high wages.
  • Price Level
    Average of current prices across the entire spectrum of goods and services produced in the economy.