Fiscal Policy Recap

Involves the use of government spending, direct and indirect taxation and government borrowing to affect the level and growth of aggregate demand in the economy, output and jobs.

Involves altering base interest rates, which ultimately determine all other interest rates in the economy, or altering the quantity of money in the economy.

Includes any policy that improves an economy’s productive potential and its ability to produce.

This occurs when an increase in income leads to the same % increase in tax.

Takes a higher percentage of tax from people with higher incomes. It means that the more a person earns, the higher his average rate of tax will be.

A tax which takes a higher percentage of tax revenue from those on low incomes. As income increases, the proportion of your income paid in tax falls.

This occurs when an increase in income leads to the same % increase in tax.

Takes a higher percentage of tax from people with higher incomes. It means that the more a person earns, the higher his average rate of tax will be.

A tax which takes a higher percentage of tax revenue from those on low incomes. As income increases, the proportion of your income paid in tax falls.

Takes a higher percentage of tax from people with higher incomes. It means that the more a person earns, the higher his average rate of tax will be.

This occurs when an increase in income leads to the same % increase in tax.

A tax which takes a higher percentage of tax revenue from those on low incomes. As income increases, the proportion of your income paid in tax falls.

UK National Debt

Mortgagae

Secured Debt