Buy custom impact of the federal budget on the economy

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Topic: Miscellaneous
Number of pages / Number of words: 3 / 786
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the structural component ? this is the deliberate (explicit) spending and taxing decisions of the government.

2. the cyclical component ? this is the non-discretionary spending, taxing and spending of the budget ? often called automatic stabilizers.

c) list possible outcomes of the budget on the economy

There are three possible outcomes of a budget on the economy...


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These being

1. balanced G = T (tens to be a neutral budget on economic activity)

2. surplus T > G (can be contractionary- not always)

3. deficit G > T (usually but not always expansionary)

each type

d) the impact of the budget on the economy

The budget impacts on the economy in the following ways...


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General points of the essay

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