EC140 Chapter Notes - Chapter 29: Laffer Curve, Business Cycle, Loanable Funds
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EC140 Full Course Notes
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Document Summary
There is a federal budget, as well as a provincial budget. Fiscal policy is the use of the federal budget to achieve macroeconomic objectives such as full employment, sustained long-tern economic growth, and price level stability. Personal income taxes are the taxes paid by individuals on their incomes. Indirect taxes include the gst and taxes of gasoline, alcohol, and a few other items. Corporate income are taxes paid by companies on their profits. Investment income is the income from government enterprises and investments. Transfer payments are payments to individuals, businesses, other levels of government and the rest of the world. Expenditures on goods and services are expenditures on final goods and services. Debt interest is the interest on the government debt. The government"s budget balance is equal to its revenues minus its outlays. When individuals and businesses incur debt, they usually do so to buy capital assets that yield a return.
