Learning objectives
State the government's macroeconomic objectives of price stability, low unemployment and economic growth, and explain the budget, a budget deficit, a budget surplus and the national debt
Classify taxes as direct or indirect and as progressive, regressive or proportional, calculate marginal and average tax rates, and explain the reasons for taxation
Distinguish capital (investment) from current government spending and explain the reasons for government spending
Distinguish expansionary from contractionary fiscal policy and use AD/AS analysis to show their effects on real output, the price level and employment
(A Level) Explain how automatic stabilisers and the multiplier shape the impact of fiscal policy
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