12.0 Introduction
Learning Objectives
By the end of this chapter, learners will be able to:
- Define the term “Fiscal Policy.”
- Discuss Federal Government budgets and debts.
- Analyze the Effects of Fiscal Policy on Real GDP in the AD-AS model.
- Explain Government Purchase and Tax Multipliers.
- Discuss Fiscal Policy during Covid 19.
Federal and provincial government budgets generate a lot of media coverage and public debate. In broad terms, these debates involve the government’s effectiveness and efficiency in providing public services and the government’s fiscal management of the economy based on:
- the size of government and the composition of government expenditures,
- the tax system and policies used to finance expenditures,
- the budget deficit or surplus, and
- the size of the public debt.
Attribution
Principles of Macroeconomics by D. Curtis and I. Irvine is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.
