What you’ll learn7 learning objectivesChoose one objective for a focused lesson, or study the complete topic.5.2.1Government budget• Meaning of government budgetSyllabus objective5.2.2Budget deficit and surplus• Distinction between a government budget deficit and a government budget surplusSyllabus objective5.2.3National debt• Meaning and significance of the national debtSyllabus objective5.2.4Taxation• Taxation:- types of taxes: direct/indirect, progressive/regressive/proportional- rates of tax: marginal and average rates of taxation (mrt, art)- reasons for taxationSyllabus objective5.2.5Government spending• Government spending:- types of spending: capital (investment) and current- reasons for government spendingSyllabus objective5.2.6Fiscal policy stance• Distinction between expansionary and contractionary fiscal policySyllabus objective5.2.7Fiscal policy in AD/AS• 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 employmentSyllabus objective