Pump-priming
Deficit financing and spending by a government on public works in an attempt to revive economy during recession is known as pump-priming. It is a countercyclical measure. It can raise the purchasing power of the people and thus stimulate and revive economic activity to the point that deficit spending will no longer be considered necessary to maintain the desired economic activity.
Fiscal Neutrality
When the net effect of taxation and public spending is neutral neither stimulating nor dampening demand, it is called fiscal neutrality. It is neutral, as total tax revenue equals total public spending.
Fiscal Drag
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