2. Amaliy mashg‘ulotlari 1- jadval № Amaliy mashg‘ulotlar mavzulari



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Discretionary fiscal policy 
Expansionary fiscal policy Contractionary fiscal policy 
 
Increase government spending 
Decrease government spending 
Decrease taxes 
Increase taxes 
Increase government spending and 
taxes equally 
Decrease government spending and 
taxes equally 
The fundamental purpose of fiscal policy is to eliminate unemployment or 
inflation. When recession exists, an expansionary fiscal policy is in order. This 
entails increased government spending or lower taxes, or a combination of the 
two. 
In other words, if the budget is balanced at the outset, fiscal policy should move 
in the direction of a government budget deficit during a recession or depression. 
Conversely when demand-pull inflation stalks the land, a restrictive or 
contractionary fiscal policy is appropriate. A contractionary policy is composed 
of 
decreased government spending, or higher taxes, or a combination of these two 
policies. Fiscal policy should move toward a surplus in the government’s budget 
when the economy is faced with the problem of controlling inflation. 
Ex. 1. Which preposition? Complete each sentence with a suitable preposition. 
1. Companies invest ….. new equipment that will increase production. 
2. The government can use its spending and taxing programs to reduce the 
demand ….. goods and services. 


3. A tax increase reduces the demand ….. goods and services and relieves the 
pressure ….. prices. 
4. The overall level of economic activity depends ….. effective demand – that 
is, total spending by individuals, businesses, and government. 
5. The government takes ….. more ….. taxes or spends less. 
6. The economy is faced ….. the problem ….. controlling inflation. 
Ex. 4. 
Choose the words with opposite meaning from two columns and arrange 
them in pairs
.
cut 
a) collective 
2) exogenous 
b) contraction 
3) expansion 
c) demand 
4) flexible 
d) endogenous 
5) individual 
e) increase 
6) nominal 
f) poverty 
7) private 
g) public 
8) save 
h) real 
9) supply 
i) rigid 
10) wealth 
j) spend 

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