1 Fiscal Cheat Sheet

Govt income includes direct/indirect taxes, revenue from enterprises, and asset sales. Expenditure covers current, capital, and transfer payments. Automatic stabilisers adjust with the cycle, while discretionary spending actively manages demand—both shown via AD/AS diagrams. Recent budgets show expansionary policy during downturns, contractionary in booms. Fiscal policy aims to support growth, stability, and living standards.

31 Jul 25

policy, economics, macroeconomics, microeconomics, fiscal