Buy custom impact of the federal budget on the economy
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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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