Fiscal Policy.

Through fiscal policy (the ability to establish taxing and spending policies), the government can do more than provide basic services. It can influence economic activity.

Suppose the economy is in a recession. This means consumers are spending less, and busi­nesses are not investing in new plants and equipment. In fact, businesses may even be laying off workers. As a result, real GDP, the nation's production, is falling. Government can stimulate economic activity or increase demand for goods and services.

If spending by consumers, businesses, or governments were to increase, GDP would increase. What fiscal policy tools can stimulate the growth of GDP? The government could lower taws and continue to spend the same amount on government programs, or increase government spending while keeping taxes about the same, or simultaneously increase government spending and reduce taxation.

When taxes are cut, individuals and businesses have more income to spend. As business and consumer spending (and therefore GDP) begin to increase, the economy will enter an expan­sion phase. Similarly, if government spending increases, the GDP increases too.

Fiscal tools also can be used to slow the economy. For example, in economic booms, prices may increase at an alarming rate. To end inflation, government could decide to use the fiscal powers. Government could increase taxes, reduce government spending, or both. If taxes were increased, consumers and businesses would have less to spend. This would reduce the total demand for goods and services and the rate of inflation.

Topical Vocabulary:

Fiscal policy – бюджетно-налоговая политика

Taxing policy – налоговая политика

Spending – расходование (расходы)

Government – правительство

Recession – рецессия, спад

To invest – инвестировать, вкладывать

To lay off – увольнять

GDP – Gross Domestic Product – валовой внутренний продукт (ВВП)

To lower taxes – снижать налоги

To keep taxes – сохранять налоги

Income – доход

Rate of inflation – уровень инфляции

Список использованной литературы:

1. Н.А. Бонкк, Г.А. Котий, Н.А. Лукьянова. Учебник английского языка, М.: «Деконт+» - «ГИС», 2008.

2. Ю.Л. Гуманова, В.А. Королёва, М.Л. Свешникова, Е.В. Тихомирова. Just English. Английский для юристов. – М.: Гуманитарное знание, ТЕИС, 1996.

3. Ю.Б. Голицынский. Грамматика. Сборник упражнений, - Санкт Петербург.: ООО ИПЦ «КАРО», 2010.

4. JA Economics. МОО «Достижения молодых», - М.: ООО «Артель-сервис», 2001.

5. Жданова И.Ф. Англо-русский словарь по экономике и праву. – М.: РУССО, 2007.

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