Please enable JavaScript.
Coggle requires JavaScript to display documents.
how can government spending affect our daily lives, functions of tax,…
how can government spending affect our daily lives
social welfare payments
educational centre,univercitys and schools
roads,airports,railway lines and ports
encourage and nurture enterprise
functions of tax
promote enterprise
acheive social objectives
achieve economic objectives
act as a automatic stabilieser
redistribution of wealth
finance gov activities
affect human behavior
reduce consumption
incorage activities
reduce antisocial behaviour
types of fiscal policy
neutral
neither tyring to boost or decrease aggregate demand
keeps spending and taxes same regardless od shocks
beleive taxes shoudnt impact economic behavior
expansionary
decrease taxes increase spending
gdp rise
employment rise
budget deficuit
contractionary
less consumer spnding
help budget deficit
increase taxes and decrease spending