MCQ

Countercyclical Fiscal Policy

Thrust of fiscal policy where government expenditure is increased and taxation is reduced in an economic downturn.

Automatic Stabilisers

Economic mechanisms that automatically reduce the impact of economic shocks without deliberate government action.

Central Bank's Action to Increase Money Supply

Buying government bonds and securities in the money market.

Circular Flow of Income

The flow of all transactions in an economy, including receipts and expenditure among firms, households, government, and financial institutions.

Supply-side Policies

Government policies focused on increasing production rather than demand.

Euro Depreciation

Occurs when the euro's exchange value falls relative to the US dollar.

Nominal GDP in Base Year

The value of output in prices of the base year.

Expansionary Fiscal Policy

When government expenditure is increased and taxation is reduced.

Inflation's Impact

Reduces purchasing power and real income.

Monetary Policy for Recession

Lowering the discount rate is a tool used by policymakers to tackle a recession.

Discretionary Fiscal Policy

Intentional changes in government spending and taxation to influence the economy.

Central Bank's Action to Reduce Money Supply

Selling government bonds and increasing the bank's discount rate.

Causes of Euro Depreciation

A rise in interest rates in other economies can lead to euro depreciation.

Keynesian Economics

Advocates for increased government spending during a recession.

Phillips Curve

Shows the relationship between unemployment rate and inflation rate.

Ireland's Balance of Payments

Indicates if Ireland is a net borrower or lender based on the current account balance.

Labour Force Survey

Designed to measure unemployment in Ireland.

Net Exports Calculation

Net exports are calculated by subtracting imports from total exports.

Monetary Policy for Inflation

Increasing the reserve ratio and interest rates to tackle inflation.