ECON 102 Lecture Notes - Lecture 17: Aggregate Demand, Money Supply, National Debt Of The United States
Document Summary
Neutral to mildly expansionary in the early 1990"s. Between 1995 and 2007, actual deficits have given way to actual surpluses. In 2008, canada"s economic action plan and the federal budget moved quickly to a deficit. Problems, criticisms, and complications of implementing fiscal policy. May not be significant in a recession. Fiscal policy can be accommodated by increases in money supply. Economies are open to unforeseen international aggregate demand shocks. Canadian economy was affected by the turmoil in the us housing and financial markets. Most economists believe fiscal policy is a useful policy lever. Major discretionary fiscal policy should be held in reserve. Should be evaluated for impact on long-run productivity growth. Annual amount by which government revenues exceed government expenditures. Annual amount by which government expenditures exceed taxes. Accumulation of all past deficits and surpluses. Relative size of the debt fell in the last decade but rose after 2009 great recession.
