EC140 Chapter Notes - Chapter 29: Deficit Spending, Output Gap, Loanable Funds
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EC140 Full Course Notes
Verified Note
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Document Summary
The annual statement of the outlays and revenues of the government of. Canada, together with the laws and regulations that approve and support those outlays and revenues. Fiscal policy: the use of the federal budget to achieve macroeconomic objective such as full employment, sustained long term economic growth and price level stability. The minister of finance presents a budget plan to parliament, which debates the plan and enacts the laws necessary to implement it. Budget balance: budget balance = revenue- outlays. The revenues and outlays are shown as a percentage of gdp. This allows us to see how large the government is relative to the size of the economy and also helps us to study changes in the scale of government over time. Revenues: total revenues have no strong trends, personal income taxes and indirect taxes fluctuated the most. Outlays: the main source of the changing trends in outlays is transfer payments to provincial governments.
