Fiscal policy and supply-side policies

• Automatic stabilisers: Parts of fiscal policy that automatically react to changes of the economic cycle
• Fiscal stimulus: Changing taxation and government spending to boost demand and output
• Indirect tax: A tax on expenditure
• Marketisation: Shifting the provision of goods or services from the non-market sector to the market sector
• Budget surplus: Achieved when government revenue exceeds government expenditure
• National debt: Unpaid government debt
• Natural rate of unemployment (NRU): Unemployment rate when the aggregate labour market is in equilibrium
• Contractionary fiscal policy: Fiscal policy implemented to decrease aggregate demand
• Crowding out: When an increase in government spending displaces private spending, with little to no increase in aggregate demand
• Corruption: Government failure through abuse of power
• Principle of taxation (canon of taxation): Criterion used to judge whether a tax is good or bad
• Privatisation: Shifting the ownership of state-owned assets to the private sector
• Proportional taxation: Taxes where the same proportion of income is paid as income rises
• Cyclical budget deficit: Part of the budget that tends to rise in economic slumps and fall in economic booms
• Reflationary policies: Policies to increase aggregate demand, with intent to increase real output and employment
• Debt sustainability: The ability to manage debt so that it doesn't impede growth or stability
• Structural budget deficit: Part of the budget that is unaffected by the economic cycle, and is more dependent on the decisions of the government
• Regressive taxation: Taxes where a smaller proportion of income is paid as income rises.
• Reindustrialise: Growth in the manufacturing industry of an economy
• Deficit financing: Borrowing to finance a budget deficit
• Deindustrialisation: Decline in the manufacturing industry of an economy
• Demand-side policy: Government policies that aim to alter aggregate demand in the economy
• Supply-side improvements: Reforms undertaken by the private sector to enable firms to become more productively efficient
• Direct tax: A tax on income and wealth
• Deregulation: Removing regulations
• Tax threshold: The level above which income tax must be paid
• Dumping: When a producer exports products at a price lower than the prices charged in their home country, or lower than the costs of production
• Expansionary fiscal policy: Fiscal policy implemented to increase aggregate demand
• Fiscal austerity: When the government enacts policies to reduce the size of a fiscal deficit