Part 1 – Section A.9. Fiscal policy

[Hameed]

CMA1.A9.a. define fiscal policy and distinguish discretionary from non-discretionary fiscal policy

CMA1.A9.b. identify the tools of fiscal policy

CMA1.A9.c. infer the macroeconomic consequences of both expansionary and contractionary fiscal policies, including the effect on aggregate demand when the level of government spending and/or taxes are changed

CMA1.A9.d. interpret the graphical representation of expansionary and contractionary actions

CMA1.A9.e. explain the effects of changes in taxation policies, including the effect on the distribution of income and the effect on resource allocation

CMA1.A9.f. explain the effects of public expenditure on the economy, including the redistribution of income and the impact on resource allocation

CMA1.A9.g. differentiate a budget deficit from a budget surplus

CMA1.A9.h. identify means of financing a budget deficit

CMA1.A9.i. define and identify built-in stabilizers

CMA1.A9.j. demonstrate an understanding of how a progressive tax system acts as a built-in stabilizer

CMA1.A9.k. compare and contrast cyclical and structural deficits

CMA1.A9.l. define recognition lag and the crowding-out effect

CMA1.A9.m. demonstrate an understanding of how inflation can arise from an expansionary fiscal policy

CMA1.A9.n. define supply-side fiscal policy

CMA1.A9.o. determine the impact that fiscal policies have on a firm (supply, demand, prices, and costs)