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DEMAND-SIDE POLICIES - Coggle Diagram

- - - - capital expenditure: spending that adds to the capital stock of the economy (highways)
      - current expenditure: on-going spendings (textbooks)
      - transfer payments: benefits paid to people with no g&s produced in return (pensions)
    - - income tax, corporate tax
      - profits from gov owned businesses
      - rent out gov owned land
  - - - crowding out of private investment
      - may need to cut other gov spending
      - higher rates of taxation
      - decrease ability of gov to react to emergencies