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When government spending is higher than government revenue it is called?
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∙ 7y ago
Over expenditure
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What does crowding out mean?
Increased government spending results in higher interest rates which puts downward pressure on investment spending.
An increase in government spending with no change in taxes leads to a?
higher interest rate
What does fisical policies deal with?
In economics, fiscal policy is the use of government spending and revenue collection to influence the economy. Fiscal policy can be contrasted with the other main type of economic policy,monetary policy , which attempts to stabilize the economy by controlling interest rates and the supply of money. The two main instruments of fiscal policy are government spending and taxation. Changes in the level and composition of taxation and government spending can impact on the following variables in the economy: * Aggregate demand and the level of economic activity; * The pattern of resource allocation; * The distribution of income. Fiscal policy refers to the overall effect of the budget outcome on economic activity. The three possible stances of fiscal policy are neutral, expansionary and contractionary: * A neutral stance of fiscal policy implies a balanced budget where G = T (Government spending = Tax revenue). Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity. * An expansionary stance of fiscal policy involves a net increase in government spending (G > T) through rises in government spending or a fall in taxation revenue or a combination of the two. This will lead to a larger budget deficit or a smaller budget surplus than the government previously had, or a deficit if the government previously had a balanced budget. Expansionary fiscal policy is usually associated with a budget deficit. * A contractionary fiscal policy (G < T) occurs when net government spending is reduced either through higher taxation revenue or reduced government spending or a combination of the two. This would lead to a lower budget deficit or a larger surplus than the government previously had, or a surplus if the government previously had a balanced budget. Contractionary fiscal policy is usually associated with a surplus. Fiscal policy was invented by John Maynard Keynes in the 1930s.
How does production influence revenue?
Revenue is directly proportional to the production. Higher the production, more the revenue would be.
What are the factor of economic resession?
well it can be higher taxes, government spending more on military and above all consumerism on the margin line which is credit when you dont have any.
What does crowding out mean?
Increased government spending results in higher interest rates which puts downward pressure on investment spending.
An increase in government spending with no change in taxes leads to a?
higher interest rate
What does fisical policies deal with?
In economics, fiscal policy is the use of government spending and revenue collection to influence the economy. Fiscal policy can be contrasted with the other main type of economic policy,monetary policy , which attempts to stabilize the economy by controlling interest rates and the supply of money. The two main instruments of fiscal policy are government spending and taxation. Changes in the level and composition of taxation and government spending can impact on the following variables in the economy: * Aggregate demand and the level of economic activity; * The pattern of resource allocation; * The distribution of income. Fiscal policy refers to the overall effect of the budget outcome on economic activity. The three possible stances of fiscal policy are neutral, expansionary and contractionary: * A neutral stance of fiscal policy implies a balanced budget where G = T (Government spending = Tax revenue). Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity. * An expansionary stance of fiscal policy involves a net increase in government spending (G > T) through rises in government spending or a fall in taxation revenue or a combination of the two. This will lead to a larger budget deficit or a smaller budget surplus than the government previously had, or a deficit if the government previously had a balanced budget. Expansionary fiscal policy is usually associated with a budget deficit. * A contractionary fiscal policy (G < T) occurs when net government spending is reduced either through higher taxation revenue or reduced government spending or a combination of the two. This would lead to a lower budget deficit or a larger surplus than the government previously had, or a surplus if the government previously had a balanced budget. Contractionary fiscal policy is usually associated with a surplus. Fiscal policy was invented by John Maynard Keynes in the 1930s.
How does production influence revenue?
Revenue is directly proportional to the production. Higher the production, more the revenue would be.
What can be removed from a budget if spending is higher than income?
Discretionary spending
What is most easily be removed from a budget if spending is higher than income?
discretionary spending
What are the factor of economic resession?
well it can be higher taxes, government spending more on military and above all consumerism on the margin line which is credit when you dont have any.
10 Points This curve sHow is that lower taxes can mean higher government revenue and it is named for what economist who drew it on Dick Cheney's cocktail napkin?
Arthur Laffer
What can be easily be removed from a budget if spending is higher than income?
Discretionary spendingDiscretionary spendingDiscretionary spending
Why do government impose indirect tax?
Governments impose indirect taxes to... · To raise government revenue - to effectively raise revenue, indirect taxes can be imposed upon price inelastic products so that demand does not fall and thus revenue is gained without impacting firms. · To discourage consumption - higher prices will discourage some spending on all products with a PED value of more than 1. · To alter the pattern of consumption - certain goods can be made more price attractive through lower taxes while goods which have high marginal social cost can be made expensive through taxation; e.g. increasing fuel taxes on airlines to better reflect the damage they cause.
What can most easily be removed from a budget if spending is higher than income?
Discretionary spendingDiscretionary spendingDiscretionary spending
Logical Do you want increased government spending and more taxes too?
The big problem is that the people who want the money spent on them are not the ones who will benefit if taxes are reduced. Likewise, the people who will have to pay more taxes will receive absolutely no benefits from the government if their taxes go up. So while one group of people benefits from increased government spending, the group that pays higher taxes does not.
