Fiscal Policy and Economic Indicators

These flashcards cover key terms and concepts related to fiscal policy and economic indicators as discussed in the lecture notes.

Fiscal Policy

Government adjustments to spending and tax policies to influence the economy.

Tariffs

Taxes imposed on imported goods to generate revenue and affect trade.

Countercyclical Policy

Policies that counteract economic fluctuations, usually through fiscal measures.

Multiplier Effect

The proportional increase in final income that results from an injection of spending.

Automatic Stabilizers

Government programs that automatically adjust with economic cycles, such as unemployment insurance.

Discretionary Policy

Fiscal policy actions chosen by the government, such as deliberate tax cuts or spending increases.

Government Expenditures

Total spending by the government, including transfer payments and funding for goods and services.

Government Purchases

Expenditures on products and services that directly absorb resources.

Expansionary Fiscal Policy

Measures that increase government spending or reduce taxes to stimulate the economy.

Contractionary Fiscal Policy

Measures that decrease government spending or increase taxes to cool down an overheating economy.