2.2.4 Government Expenditure

• Fiscal Policy


  Government policies regarding tax can be loose (lower taxes and increased spending) or tight (higher taxes and decreased spending)
• Government Borrowing


  The amount the government must borrow each year to finance their spending.
• Government Debt


  The total stock of unpaid debt issued by a government borrowed by issuing bonds or other securities.
• Government Spending


  Spending by government on education, health care and defence & other public services.
• Trade Cycle


  Fluctuations in economic activities especially in employment, output and income, prices, profits etc
• Automatic Stabilisers


  Automatic fiscal changes as the economy moves through the business cycle
• Discretionary Fiscal Policy


  The government actively making a change to spending or taxes to achieve macroeconomic objectives