1. Consider the following budget data for Canada from 2017. Canada has a central government as well...

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1. Consider the following budget data for Canada from 2017. Canada has a central government as well as provincial governments. (All figures are in millions of Canadian dollars, or C$.)

Central purchases of goods and services 75,000 Provincial purchases of goods and services 290,000 Central transfer payments 131,000 Provincial transfer payments 158,000 Grants in aid (central to provincial) 82,000 Central tax receipts 290,000 Provincial tax receipts 348,000 Interest received from private sector by central!government 10,000 Interest received from private sector by provincial!governments 30,000 Total central government debt 550,000 Total provincial government debt 550,000 Nominal interest rate 4%

Calculate the overall and primary deficits for the central government, the provincial governments, and the combined government.

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Macroeconomics Global Edition

ISBN: 978-1292318615

10th Edition

Authors: Andrew Abel ,Ben Bernanke ,Dean Croushore

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