EC140 Chapter Notes - Chapter 29: Fiscal Multiplier, Economics, Output Gap
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EC140 Full Course Notes
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Document Summary
Federal budget: annual statement of outlays and revenues of the gov. of canada, together with the laws and regulations that approve and support those outlays and revenues. Provincial budget: annual statement of revenues and outlays of a provincial gov. , together with laws and regulations that approve or support those. After ww2 since late 40s, federal budget"s purpose was to pursue gov. "s fiscal policy. Fiscal policy: use of federal budget to achieve macroeconomic objectives such as full employment, sustained long-term economic growth, and price level stability. Process begins with long, drawn-out consultations between minister of finance and. Department of finance officials and their counterparts in prov. Discussions deal with programs that are funded and operated jointly by 2 levels of gov. Minister consults with business and consumer groups on wide range of issues. Minister then develops set of proposals discussed in cabinet becomes gov. policy. Minister finally presents budget plan to parliament debates and enacts laws necessary to implement.
