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6 Cards in this Set
- Front
- Back
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the use of government taxes and spending to alter marcoeconomic outcomes.
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fiscal policy
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tax cuts or spending hikes intended to increase aggregate demand
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fiscal stimulus
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teh amount of additional aggregate demand needed to achieve full employment after allowing for price level changes.
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AD shortfall
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tax hikes or spending cuts intended to reduce aggregate demand
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fiscal restraint
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the amount by which aggregate demand must be reduced to achieve full employment equilibrium after allowing for price level changes.
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ad excess
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a reduction in private sector borrowing caused by increased government borrowing
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crowding out
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