Budgetary Policy: Revenue, Expenses & Outcomes

What this note covers

1. What Budgetary Policy Is and Where the Revenue Comes From
2. Progressive, Regressive and Proportional Taxes: Who Bears the Burden
3. Budget Expenses: Where the Money Goes
4. Budget Outcomes: Deficit, Surplus and Balance — and How to Read Them
5. Financing a Deficit and Dealing with a Surplus
6. Automatic vs Discretionary Stabilisers: A Full AD/AS Application

6 sections · 14 key terms & formulas · 6 common mistakes