Podcast
Questions and Answers
Which type of tax is collected directly from the income of individuals or businesses?
Which type of tax is collected directly from the income of individuals or businesses?
- Direct Tax (correct)
- Value-Added Tax (VAT)
- Indirect Tax
- Excise Tax
Increased government spending always leads to a decrease in national debt.
Increased government spending always leads to a decrease in national debt.
False (B)
What is the term for government spending in the context of fiscal policy in the Philippines?
What is the term for government spending in the context of fiscal policy in the Philippines?
Paggasta ng Pamahalaan
A 12% tax applied to purchased goods in the Philippines is known as the ______.
A 12% tax applied to purchased goods in the Philippines is known as the ______.
Match the fiscal policy instrument with its description:
Match the fiscal policy instrument with its description:
Flashcards
Direct Tax
Direct Tax
Tax collected directly from individuals or businesses' income.
Indirect Tax
Indirect Tax
Tax collected through product prices, like VAT or excise tax.
Government Spending
Government Spending
Funds allocated by the government for public services and projects.
Gross Domestic Product (GDP)
Gross Domestic Product (GDP)
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Expansionary Fiscal Policy
Expansionary Fiscal Policy
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Study Notes
Fiscal Policy Instruments
- Government tools to influence the economy
- Includes taxation and spending
- Taxation (Pagbubuwis):
- Primary source of government funds
- Supports programs and projects
- Two types:
- Direct Tax (Direktang buwis): Collected directly from individuals or businesses (e.g., income tax, corporate tax).
- Indirect Tax (Di-direktang buwis): Collected from the price of goods or services (e.g., Value-Added Tax (VAT), excise tax).
- Government Spending (Paggasta ng Pamahalaan):
- Funds public services (education, healthcare, infrastructure, security).
- Important for economic growth and job creation.
- Examples: Increased education funding, expansion of healthcare programs.
Fiscal Policy Impact on the Economy
- Gross Domestic Product (GDP):
- Proper fiscal policy can increase GDP through increased government spending and consumer spending.
- Unemployment:
- Expansionary fiscal policy (increased spending) can lead to more jobs.
- Inflation:
- Contractionary fiscal policy (decreased spending) can help control high inflation by reducing excess money supply.
- Government Debt:
- Overspending can lead to larger government debt.
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