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December-11-08
9:03 AM
Budget Surplus
- Surplus Budget : occurs when the government's revenues exceed their expenditures = T > G
- Budget Surplus = government revenues - government expenditures)
Budget Deficit
- Deficit Budget: occurs when the government's expenditures exceed their revenues. = G > T
- Budget deficit = government expenditures - government revenues)
GDP
- The size of a governments surplus or deficit in relation to the economy's overall GDP gives an indication
of what type of discretionary fiscal policy is an operation, as well as the built in effects of automatic
stabilizers.
Balanced Budget
Balance Budget - occurs when the government's revenues equals their expenditures. = T= G
- Is where the government's expenditure and revenues are equal
Debt
Surpluses
Deficits
- Deficits sometimes indicate active expansionary policies that increase government expenditures or
reduce revenues
- Deficits come about as a result of automatic stabilizers