Ch 24 - Ch. 24 Money Federal budget- annual statement of...

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Ch. 24 Money Federal budget- annual statement of outlays and revenues of Canada Provincial budget- an annual statement of revenues and outlays of a provincial government Fiscal Policy- the use of the federal budget to achive macroeconomic objectives, full employement, longterm economic growth, price level stability Federal budget is made up of 3 sections Revenues- Come from 4 sources, personal income taxes, corporate income taxes, indirect taxes and investment income Outlays- 3 categories, Transfer payments, expenditures on goods and services and debt interest Budget balance= revenues – outlays Budget surplus- more revenue Budget deficit- more outlays Balanced budget = same revenues and outlays DEFICIT and DEBT Government debt- total amount of govt borrowing to finance a deficit sum of past deficits – sum of past surpluses FISCAL POLICY MULTIPLIERS Automatic fiscal policy- change in fiscal policy that is triggered by the state of the economy, ie an increase in unemployment triggers an increase in payments to the unemployed
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Ch 24 - Ch. 24 Money Federal budget- annual statement of...

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