"The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s, when the previous laissez-faire approach to economic management became unworkable."
The use of taxation and government spending to influence economic activity, including urban development.
Macroeconomics: The study of the economy as a whole, including topics such as inflation, unemployment, and the business cycle.
Fiscal Policy: The use of government spending and taxation to influence the economy.
Government Revenue: The sources of government revenue, including taxes, fees, and borrowing.
Government Spending: The various categories of government spending, including social programs, defense, and infrastructure.
Budget Deficits: The difference between government spending and revenue.
Public Debt: The total amount of money owed by the government to its creditors.
Monetary Policy: The use of interest rates and other tools to influence the money supply and inflation.
Taxation: The various forms of taxation, including income tax, sales tax, and property tax.
Redistribution: The use of government transfers and tax policies to redistribute income and wealth.
Economic Growth: The factors that drive economic growth, including investment, productivity, and innovation.
International Trade: The role of trade in the economy, including the benefits and costs of trade.
Environmental Economics: The role of the environment and natural resources in the economy, including environmental policy and pollution control.
Regional Development: The factors that drive economic growth and development at the regional level, including urbanization, transportation infrastructure, and industry clusters.
Public Goods and Services: The role of government in providing public goods and services, including education, health care, and public safety.
Microeconomics: The behavior of individuals and firms in the economy, including topics such as market structure, pricing, and consumer behavior.
Behavioral Economics: The study of how people make decisions in economic situations.
Econometrics: The use of statistical methods to analyze economic data.
Game Theory: The study of strategic decision-making in situations where the outcomes depend on the actions of multiple individuals or firms.
Economic History: The history of economic thought and the evolution of economic systems over time.
Economic Policy: The design and implementation of economic policy at the local, state, and federal levels.
Expansionary Fiscal Policy: This type of policy involves increasing government spending or cutting taxes to increase aggregate demand and stimulate economic growth. This policy is used during recessions or when there is high unemployment.
Contractionary Fiscal Policy: This policy is the opposite of expansionary policy, and it involves decreasing government spending or increasing taxes to reduce aggregate demand and control inflation. This policy is used during times of inflation or when the economy is overheating.
Automatic Stabilizers: These are programs built into the tax and transfer system that automatically stabilize the economy during recessions and expansions. Examples include unemployment insurance and progressive income taxes.
Balanced Budget Policy: This policy aims to balance government spending with revenue, helping to ensure that the government does not run a deficit. This policy is intended to prevent inflation and promote economic stability.
Structural Fiscal Policy: This policy involves changes in government taxation, spending, and regulation to promote long-term economic growth. This policy focuses on increasing productivity and competitiveness in the economy.
Discretionary Fiscal Policy: These policies are specifically formulated and implemented to meet newly arising, and generally unexpected, problems in the current economic environment. The government's decisions to lower taxes to stimulate spending or increase spending to create jobs would be examples of discretionary fiscal policy.
"Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorized that government changes in the levels of taxation and government spending influence aggregate demand and the level of economic activity."
"Fiscal and monetary policy are the key strategies used by a country's government and central bank to advance its economic objectives."
"Changes in the level and composition of taxation and government spending can affect macroeconomic variables, including: - Aggregate demand and the level of economic activity - Saving and investment - Income distribution - Allocation of resources."
"Fiscal policy deals with taxation and government spending and is often administered by a government department; while monetary policy deals with the money supply, interest rates and is often administered by a country's central bank."
"It is designed to try to keep GDP growth at 2%–3% and the unemployment rate near the natural unemployment rate of 4%–5%. This implies that fiscal policy is used to stabilize the economy over the course of the business cycle."
"The previous laissez-faire approach to economic management became unworkable during the Great Depression of the 1930s."
"Fiscal policy is used to stabilize the economy over the course of the business cycle."
"Fiscal policy is based on the use of government revenue collection (taxes or tax cuts) and expenditure to influence a country's economy."
"Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorized that government changes in the levels of taxation and government spending influence aggregate demand and the level of economic activity."
"Inflation is considered 'healthy' at the level in the range 2%–3%."
"Fiscal policy is designed to increase employment."
"The unemployment rate near the natural unemployment rate of 4%-5% is targeted by fiscal policy."
"Both fiscal and monetary policies influence a country's economic performance."
"The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s."
"The previous laissez-faire approach to economic management became unworkable during the Great Depression of the 1930s."
"Fiscal policy can affect macroeconomic variables, including aggregate demand and the level of economic activity, saving and investment, income distribution, and allocation of resources."
"Government revenue collection (taxes or tax cuts) and expenditure are the primary tools of fiscal policy."
"Fiscal policy is often administered by a government department."
"Fiscal policy deals with taxation and government spending, while monetary policy deals with the money supply and interest rates."