1 The following budget data are for a country having both a central government and provincial governments:...

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1 The following budget data are for a country having both a central government and provincial governments: Central purchases of goods and services Provincial purchases of goods and services Central transfer payments Provincial transfer payments Grants in aid (central to provincial) Central tax receipts Provincial tax receipts Interest received from private sector by central government Interest received from private sector by provincial governments Total central government debt Total provincial government debt Central government debt held by provincial governments Nominal interest rate 200 150 100 50 100 450 100 10 10 1000 o 200 10% Calculate the overall and primary deficits for the central government, the provincial governments, and the combined governments.

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Macroeconomics

ISBN: 126148

6th Edition

Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore

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