Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

• Class : Y11

• Lesson Topic: Government & Economy

• Scheme of Work: Fiscal Policy

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Planning ToolsP&DPlanning and

Data

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Keyword Definition

Aggregate demand

Fiscal policy

Budget deficit/surplus

Direct/indirect

expansionary/contractionary

CONNECTIVES

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Lesson objectives• Define fiscal policy

• Identify government streams of income and expenditure

• Explain the significance of government debt on the UK’s finances

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

CONNECTIVES for AnalysisCONNECTIVES for ApplicationCONNECTIVES for Evaluation

COMPARINGEqually…As with…Like…In the same way…Similarly…Even so…Likewise…CAUSE & EFFECT

Consequently… Due to…As a result… Therefore..Because of… Because…

CONCLUDINGFirstly… After…Secondly… Before…Overall… I believe…Finally… I think …In conclusion… it depends…To conclude… short term…Meanwhile… Long term…

CONTRASTINGAlthough… Except…Moreover… If…However… Yet…Apart from… Unless…Despite… As long as…

EMPHASISINGMost importantly…Significantly…Notably…Especially…Above all…In particular…Indeed…

QUALIFYINGDespite… Yet…As long as… Unless…Apart from… If…Moreover… Except…However… Although…

ADDINGIn addition… And…Too… Also…Additionally… As well as…Furthermore…

ILLUSTRATINGFor instance… Such as…In the case of… So…For example…As revealed by…As illustrated by…

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Climb the LadderA-A*

1. To what extent 2. Do you think3. Evaluate whether (8-10m) 10+ connectives & key words

C-B

1. Explain 2. Compare3. Analyse (5-8m) 5+ connectives & key words

E-D

1. Define 2. Describe3. Identify (2-4m) 2 + connectives & key words

ATDApply to

demonstrate

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Government Taxation & Spending

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Fiscal Policy• Government income and expenditure utilised to influence the

economy

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

The aim of fiscal policy is to do what?

- Influence Aggregate demand in the economy.

- Boost demand when the economy has slowed: EXPANSIONARY

- Reduction in AD causes inflation to reduce: CONTRACTIONARY

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Government Income• Income tax• Council tax• Capital tax• Corporation tax• Other indirect taxes• VAT• NI Contributions • Other

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Expenditure • Social Security • Law and Order• Health• Education• Defence• Foreign Aid• Environment• Transport

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Videos • What is a budget?

• What is a budget deficit?

• What is difference between budget deficit & surplus?

• What is budget debt?

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

What’s the diff?

• http://www.bbc.co.uk/news/business-12099638 - Impact of VAT rise

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Types of taxation• There are 3 main types of taxation:

i) Progressive – a tax which takes a higher % from the income of richer people.

ii) Proportional – a tax which takes an equal % from the income of all people.

iii) Regressive - a tax which takes a higher % from the income of poorer people.

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Please give examples of Progressive and Regressive Taxes.

• Progressive – Income Tax, National Insurance and Inheritance tax.

• Regressive – VAT, Excise Duty

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Taxes can be direct or indirect• Direct Taxes e.g. Income tax, directly affect the recipient of income and

then they can decide how it affects their future spending.

• Indirect Taxes e.g. VAT, are usually placed on good and services consumed and from this the consumer has to decide what to do with the indirect change in their income.

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

There are 4 main types of Government Spending:

a) Capital Spending – Roads, hospitals and schools.b) Current Spending – Running public services, e.g. the NHS and

state schoolsc) Transfer payments – Benefits to pensioners and the

unemployedd) Debt interest payments – Payments to the holders of

government debt.

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Lesson objectives• Define fiscal policy

• Identify government streams of income and expenditure

• Explain the significance of government debt on the UK’s finances

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

PLENARIES

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

Climb the LadderA-A*

1. To what extent 2. Do you think3. Evaluate whether (8-10m) 10+ connectives & key words

C-B

1. Explain 2. Compare3. Analyse (5-8m) 5+ connectives & key words

E-D

1. Define 2. Describe3. Identify (2-4m) 2 + connectives & key words

ATDApply to

demonstrate

Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

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Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

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Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

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Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

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Economics Section: Government & Economy Further Reading C.38

Keywords – Aggregate Demand, fiscal, taxation, direct/indirect, expansionary, contractionary

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