current expenditure and capital Spain or China as case studies, the idea of potentially wasteful capital spending is an interesting one to bring in if you haven’t done so already. expenditure and between direct and indirect taxes and their relative desirability. Taxation: Direct vs. Indirect. Progressive, proportional, regressive. Advantages and disadvantages of direct (incentives, impact on AD, Learners should be able to progressive, collection) and indirect (regressive, avoids disincentives, illustrate this idea AD/AS targeting of demerit goods, inflationary impact), and their impact on the diagrams. economy. Explain how Keynesian Link between direct tax rates, tax revenue and incentives to work/brain economists believe that fiscal drain Laffer Curve. AD/AS. Plenty of banker stories plus the long running – policy can and should be used to wealth tax in France to use to stimulate debate also possible to flag up – control the level of aggregate equality, etc., as part of this debate; you could add this as a topic at this demand in the economy under stage rather than covering it as part of market failure/imperfection. certain circumstances. A nice extension discussion would be to discuss the pros and cons of Learners should be able to operating a flat tax system e.g. Estonia’s flat-rate income tax, or Slovakia that sets the same rate of tax on everything! evaluate the use of demand side fiscal policy in terms of both its effectiveness and possible side effects, for example, on the public sector debt. Learners should be able to evaluate the effectiveness of these types of policy.
current expenditure and capital expenditure and between direct and indirect taxes and their relative desirability. Learners should be able to illustrate this idea AD/AS diagrams. Explain how Keynesian economists believe that fiscal policy can and should be used to control the level of aggregate demand in the economy under certain circumstances. Learners should be able to evaluate the use of demand side fiscal policy in terms of both its effectiveness and possible side effects, for example, on the public sector debt. Learners should be able to evaluate the effectiveness of these types of policy. Spain or China as case studies, the idea of potentially wasteful capital spending is an interesting one to bring in if you haven’t done so already. Taxation: Direct vs. Indirect. Progressive, proportional, regressive. Advantages and disadvantages of direct (incentives, impact on AD, progressive, collection) and indirect (regressive, avoids disincentives, targeting of demerit goods, inflationary impact), and their impact on the economy. Link between direct tax rates, tax revenue and incentives to work/brain drain – Laffer Curve. AD/AS. Plenty of banker stories plus the long running wealth tax in France to use to stimulate debate – also possible to flag up equality, etc., as part of this debate; you could add this as a topic at this stage rather than covering it as part of market failure/imperfection. A nice extension discussion would be to discuss the pros and cons of operating a flat tax system e.g. Estonia’s flat-rate income tax, or Slovakia that sets the same rate of tax on everything!