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Fiscal Policy - Coggle Diagram
Fiscal Policy
Purpose of government spending
Social protection
Education
Healthcare
Defence, law and order
Debt interest
Direct taxes
Income tax
National Insurance
Capital Gains
Inheritance tax
Corporation tax
Fiscal policy for economic objectives
Rise in economic growth
Lower unemployment
Price stability
Improved balance of payments
Fair distribution of income
Costs of Fiscal Policy
Opportunity cost
Consumers spend extra income
Firms spend extra money on imports
Inflation rises if supply can't keep up with supply
Indirect taxes
VAT
Excise Duties
Customs Duties
Government budgets
Balanced Budget
Budget Surplus
Budget Deficit
Benefits of Fiscal Policy
Reduced unemployment
Economic growth increases
Faster acting