L-shaped recovery is a period of a sharp fall in economic growth followed by a long flat period. It usually happens when the economy experiences a severe recession and never returns to higher growth for years. If drawn, the trend looks like the letter ‘L.’
What's it: Government current expenditures represent spending on day-to-day operations, including administrative activities and public services.
What's it: Transfer payments are payments by the government to the private sector without having to pay for the goods and services provided.
What's it: National debt is money owed by the government to its creditors. The government owes money to cover the budget deficit, where
What's it: Discretionary fiscal policy is a deliberate government policy to influence the economy by changing its spending and income. It is
What's it: An induced tax is a tax in which the rate increases and decreases depending on the taxpayer's ability. So, when our income or wealth
What's it: A balanced budget is when a government's spending equals its revenue. Therefore, there is no surplus or deficit. So, the government
What's it: A budget surplus is when the government plans to spend less than it earns. In other words, the government's budgeted revenue is
What's it: A tax is a mandatory levy by the government on an individual or other entity. There are many variations, including income tax, value