50 баллов. Ответить на тест. Fiscal policy is an instrument of demand management, which is used to influence the level of economic activity in an economy through the control of taxation and government expenditure.
The government can use a number of taxation measures to control aggregate demand or spending: direct taxes on individuals (income tax) and companies (corporation tax) can be increased if spending has to be reduced, for example, to control inflation. Spending can also be reduced by increasing indirect taxes: an increase in the VAT (value added tax) on all products or excise duties on particular products such as petrol and cigarettes will result in lower purchasing power.
The government can change its own expenditure to affect spending levels as well: a cut in purchases of products or capital investment by the government can reduce total spending in the economy.
If the government is to increase spending, it creates a budget deficit, reducing taxation and increasing its expenditure.
A decrease in government spending and an increase in taxes (a withdrawal from the circular flow of national income) reduces aggregate demand to avoid inflation. By contrast, an increase in government spending and / or decrease in taxes – an injection into the circular flow of national income stimulates aggregate demand and creates additional jobs to avoid unemployment.
In practice, however, the effectiveness of fiscal policy can be reduced by a number of problems. Taxation rate changes, particularly changes in income tax, take time to make; considerable proportions of government expenditure on, for example, schools, roads, hospitals and defence cannot easily be changed without lengthy political lobbying.
II. Выберите правильный вариант ответа на вопросы к тексту.
1. What is the effect of reduced aggregate demand in an economy?
a) decreasing inflation b) increasing inflation c) avoiding inflation
2. How can aggregate demand be reduced?
a) by an increase in taxes
b) by a decrease in government spending
c) by both a decrease in government spending and an increase in taxes
3. How does higher aggregate demand affect government spending?
a) there is an increase in taxes
b) there is a decrease in taxes and an increase in government spending
c) there is a decrease in government spending
III. Закончите предложения по содержанию прочитанного текста.
4. The government can impose a number of taxation measures_________.
a) to increase aggregate demand
b) to decrease aggregate demand or spending
c) to create a budget deficit
5. Spending can also be cut ___________.
a) by raising indirect taxes
b) by decreasing indirect taxes
c) without changing indirect taxes
6. An increase in the value added tax on products will result in__________.
a) unchanged purchasing power
b) higher purchasing power
c) lower purchasing power
7. An injection into the circular flow of national income brings about additional jobs_________.
a) to increase unemployment
b) to prevent unemployment
c) to reduce unemployment
8. Large proportion of government expenditure on defence cannot easily be altered without _______.
a) voting b) referendum c) political lobbying
IV. Подберите эквивалент к данному русскому слову или словосочетанию.
9. налогообложение
a) tax b) taxation c) tax rate
10. совокупный спрос
a) aggregate demand b) consumer demand c) primary demand
11. акцизные сборы
a) customs duties b) excise duties c) registration duties
12. покупательная способность
a) earning power b) water power c) purchasing power
13. приводить к чему-либо
a) result in something b) follow something c) avoid something
14. уменьшать налоги
a) decrease taxes b) impose taxes c) subtract taxes
15. увеличивать расходы
a) cut spending b) increase spending c) multiply spending