Face of rising expenditures the budget surplus may increase

Assignment Help Business Economics

Reference no: EM13984031

In the late 1990s, the federal Minister of Finance announced that expenditures would rise, yet he still predicted that the budget surplus would increase. How is it possible that in the face of rising expenditures the budget surplus may increase? Under which conditions might this happen and what is the likelihood that rising expenditures will contribute to rising deficits?

Reference no: EM13984031

Questions Cloud

Large country in global economy with fixed exchange rates : Will expansionary monetary policy cause crowding out of investment in a large country in a global economy with flexible exchange rates? Will expansionary monetary policy cause crowding out of investment in a large country in a global economy with fix..

Theory of gains from trade have to say about that criticism : One critic of the North American Free Trade Agreement argued that "it can't be in our interest to sign this deal; Mexico gains too much from it." What does the theory of the gains from trade have to say about that criticism?

Perfectly competitive market with no externalities : What property does market equilibrium have for a perfectly competitive market with no externalities?

Assume the marginal revenue product : Assume the marginal revenue product ( MRP ) for minority workers is given by MRP = 40 − 5N m , where N m is the number of minority workers. The market wage for minorities is $5/hr. Discriminating firms devalue the contributions of minorities at a rat..

Face of rising expenditures the budget surplus may increase : In the late 1990s, the federal Minister of Finance announced that expenditures would rise, yet he still predicted that the budget surplus would increase. How is it possible that in the face of rising expenditures the budget surplus may increase? Unde..

Both countries have an overall unemployment rate : Consider two hypothetical countries. In Country A, 20 percent of the labor force is unemployed for half the year and employed for the other half; the remaining 80 percent of the labor force is never unemployed. In Country B, 100 percent of the labor ..

Assume that the unemployment rate : Assume that the unemployment rate is 7% and GDP is $4,000 billion. What is a rough estimate of the potential GDP if the NAIRU is 5%? Assume that potential GDP is growing at 3% annually. What will potential GDP be in 2 years? How fast will actual GDP ..

What determines interest rates : What determines interest rates? What is the role of risk? Of term? Of inflation? Of transactions costs? Please be specific like what will cause it to go UP and what will cause it to go down and why.

Difference in the payoffs to productive characteristics : Where W is the hourly wage for men and females, EDUC is years of education, EXP is total years of experience, and TEN is tenure with ones current employer. What fraction of the gender wage gap is explained by differences in the production characteris..

User Account

All Pages