There are three types of fiscal outcomes:
* contractionary
* expansionary
* neutral
In a neutral stance, the govt does not change the budget outcome from the previous years level.
So say if there was a deficit last year of $10bn, and there is a deficit of $10bn this year, would you call the fiscal stance of the budget is contractionary (because of a decrease in deficit) or neutral (because it has remained in deficit i.e. the budget outcome has not changed from the previous years level)????
Any help/discussion would be appreciated
thxx
* contractionary
* expansionary
* neutral
In a neutral stance, the govt does not change the budget outcome from the previous years level.
So say if there was a deficit last year of $10bn, and there is a deficit of $10bn this year, would you call the fiscal stance of the budget is contractionary (because of a decrease in deficit) or neutral (because it has remained in deficit i.e. the budget outcome has not changed from the previous years level)????
Any help/discussion would be appreciated
thxx