With the help of a diagram, assess the effectiveness of using fiscal policy to close a negative output gap in an economy

5.2.1 meaning of government budget

5.2.2 distinction between a government budget deficit and a government budget surplus

5.2.3 meaning and significance of the national debt

5.2.4.1 types of taxes: direct/indirect, progressive/regressive/proportional

5.2.4.2 rates of tax: marginal and average rates of taxation (mrt, art)

5.2.4.3 reasons for taxation

5.2.5.1 types of spending: capital (investment) and current

5.2.5.2 reasons for government spending

5.2.6 distinction between expansionary and contractionary fiscal policy

5.2.7 AD/AS analysis of the impact of expansionary and contractionary fiscal policy on the equilibrium level of national income and the level of real output, the price level and employment

9.1.1.1 definition of the multiplier

9.1.1.2 formulae for and calculation of multiplier in a closed and open economy, with and without a government sector

9.1.1.3.1 average and marginal propensities to save (aps and mps)

9.1.1.3.2 average and marginal propensities to consume (apc and mpc)

9.1.1.3.3 average and marginal propensities to import (apm and mpm)

9.1.1.3.4 average and marginal rates of tax (art and mrt)

9.1.1.4 national income determination using AD and income approach with the multiplier process

9.1.1.5 calculation of effect of changing AD on national income using the multiplier

9.1.2.1 consumption function: autonomous and induced consumer expenditure

9.1.2.2 savings function: autonomous and induced savings

9.1.2.3 autonomous and induced investment; the accelerator

9.1.2.4 government spending

9.1.2.5 net exports (exports minus imports)

9.1.3.1 inflationary and deflationary gaps

9.2.1 actual growth versus potential growth in national output

9.2.2 positive and negative output gaps

9.2.3.1 phases of the cycle

9.2.3.2 causes of the cycle

9.2.3.3 role of automatic stabilisers

9.2.4 policies to promote economic growth and their effectiveness

9.2.5.1 definition of inclusive economic growth

9.2.5.2 impact of economic growth on equity and equality

9.2.5.3 policies to promote inclusive growth

9.2.6.1 definition of sustainable economic growth

9.2.6.2 using and conserving resources

9.2.6.2 using and conserving resources

9.2.6.4 policies to mitigate the impact of economic growth on the environment and climate change