GDP Expenditure question ?
The Federal Government is going to table a budget in the House of Commons on January 27th, 2009. The aim of this budget is to stimulate the economy, to encourage an increase in GDP. Jim Flaherty, the Minister of Finance, has received many suggestions as to how this can be achieved. For each of the following suggestions, explain whether the transaction will have a direct OR an indirect effect on GDP. Explain under which expenditure category any effect on GDP will appear.
a) Decrease personal tax rates.
b) Increase the maximum employment insurance payment that an individual can receive.
c) Increase funding for public transportation systems in major Canadian cities.
d) Make grants available to homeowners who make their homes more energy efficient.
e) Provide funding to provinces to increase the stock of affordable housing
this isn’t for real, its just a made up question
I don’t know I’m in The USA. We have our own economic melt down.
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