Was the 1979 Federal Budget Deficit Too Large? A Comment

In a recent issue of Canadian Public Policy Analyse de Politiques, J. Schaafsma (1980:556559) examined the magnitude of the federal budget deficit for 1979. The four main points which emerge from his analysis are: (1) There was an 11 per cent gap in 1979 between actual and full employment GNE.1 (2) The income elasticity of federal revenues, relative to federal expenditures, was 2.02. (3) The federal budget balance, calculated at full employment, indicated a small surplus in 1979

Deficit spending · Economics · Federal budget · Fiscal year · Macroeconomics · Canadian Policy and Governance · Psychology · Finance