The term budget deficit in an economy simply implies that the public expenditure of the government exceeds the amount of revenue earning in a financial year. This is generally occurs in an economy when the government’s actual expenditure goes beyond its planned expenditure. A…
The central bank of the economy takes its part for issuing such government debts by debt selling in the bond market and in the debt market. Generally the financial institutions of the economy buy such government bonds but the individual citizens of the nation are also allowed to buy the bonds and the national savings certificates. However, when the government caries forward a budget deficit plan regarding its public expanses for a very long time period, the total amount of deficit then called as government debt. In this situation some part of spending of the government used for reimbursement of such debts. (Budget Deficit, n.d.).
A deficit financing through public borrowing generally leads to increase in aggregate demand in the economy and therefore stimulate the economic activities so as to increase the growth and level of employment in the economy. At the end of the Second World War Britain got relief from the huge deficits of the war. Government expenditure was mobilized to the other sectors of the economy. But with the rise of military expenditure in 1950 in Korea, the UK government had to take a deficit budgetary policy that led the amount of deficit to reach to almost 4 percent of GDP in 1953. With the entering in the period of cold war Britain took the policy of fiscal activism between 1950 and 1960. The amount of deficit fluctuated from 2 to 3 percent of GDP in almost every year up to 1967 when the deficit rouse again to 4 percent of the GDP. The government immediately took fiscal tightening measurements that ultimately resulted in surplus in 1969 and 1970. However, fluctuation inn deficit became very apparent after 1970 and in 1973 the deficit again came back to 4 percent of GDP. The situation further eroded when the deficit touched almost 7.3 percent in 1975 with the significant effect of the post war recession. This situation insisted the ...
Cite this document
(“Economics Environment Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/395176-economics-environment
(Economics Environment Essay Example | Topics and Well Written Essays - 1500 Words)
“Economics Environment Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.net/miscellaneous/395176-economics-environment.
Carbon dioxide is the leading greenhouse gas causing global warming. Efforts to reduce this gas are so welcome in a world that faces tremendous environmental challenges. Some people think that the measures to undertake in this venture are so expensive to attain.
According to the report in the United Kingdom, different sectors utilise energy for varied purposes and in diverse extents. The domestic sector in the UK is accountable for using almost 34% of energy. The demand for domestic energy is recognised to be increasing by a considerable extent of which oil use is over 70 million tonnes per annum.
Phil does not have an absolute advantage, but he has a comparative advantage
Phil and Frances should definitely specialize in order to gain value from mutual exchange. To define what each of them should specialize in, we have to calculate what Phil's and Frances's comparative advantage is.
For this assignment, we select Afforestation of surplus agricultural land as our major project, which deals with planting of trees on land that did not carry forest for centuries, i.e. Afforestation is a clear shift in land use of a certain area.
But it should also be remembered that the approach of Environmental economics is quite different from that of green economics or ecological economics. This is because these forms of economics use virtually non standard approaches to ecology, environmental studies, environmental science, or environmental problems.
The Kyoto Protocol was the first international effort seeking the solution of alarming green house effect. The concept of carbon offset emerged as a consequence of Kyoto Protocol. The carbon offset is a kind of credit on the restriction on
Economic globalization, namely the spread of neoliberalism and capitalist-inspired consumerism as the dominant engine of economic growth, has both supporters and detractors. This brief essay will answer the
rbara, The European Union Emission Trading Scheme, Review of Environmental Economics and Policy, Volume 1, Number 1, (2007) 66-86 [Online] Available at: http://www.oxfordjournals.org/our_journals/reep/press_releases/freepdf/issue/pdf [Accessed 10 Apr 2011]
Mankiw, Gregory N.,