13. The following table presents data taken from Finance Canada's Economic and Fiscal Update, November 2003. It
Question:
13. The following table presents data taken from Finance Canada's Economic and Fiscal Update, November 2003. It shows federal government spending, after removing spending on interest payments on the debt, in fiscal years 1992-93 and 2001-02. The spending measured here is on health care, defence, pensions, Employment Insurance, and other goods and services.
1992-93 2001-02 (percentage of GDP)
Change Federal government program spending 16.8%
11.3%
-5.5%
Source: The Economic and Fiscal Update, http://www.fin.gc.ca/ec2003/ec03e.pdf, Department of Finance Canada, 2003.
In the earlier period, the federal government spent an amount equal to 16.8 percent of GDP on such programs. In the later period, federal spending on these programs amounted to only 11.3 percent of GDP. How do you think this change in government spending policy affected Canadians receiving health care, pensions, and Employment Insurance?
Step by Step Answer:
Principles Of Macroeconomics
ISBN: 9780176591977
7th Canadian Edition
Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie