The Government Sector

Question 1

Most data found in the..

Answer 1

GFSM, Government Finance & Statistics Manual

Question 2

Operating Balance

Answer 2

Revenues - Expenses

Question 3

Deficit / Surplus aka …

Answer 3

Net Lending / Borrowing

Question 4

NLB = f(NOB)

Answer 4

NOB - NANA

Question 5

Overall balance should exclude (3)

Answer 5

privatization proceeds, policy loans, fixed asset disposals

Question 6

Ending Net Worth =

Answer 6

Starting Net Worth + NOB + OEF

Question 7

Overall balance = f(NLB)

Answer 7

NLB - privatization proceeds - fixed assets - policy loans

Question 8

Fiscal Stance

Answer 8

Fiscal Balance vs Base Year

Question 9

Fiscal Impulse

Answer 9

Change in Fiscal Stance

Question 10

Expansionary Fiscal Stance =

Answer 10

Adj. Balance - Base Year Balance = -vebt

Question 11

CAB = f(OpB)

Answer 11

S - I,private - OpB

Question 12

The CAB can be left unchanged despite Government Balance worsening if..

Answer 12

The private sector balance improves

Question 13

Procyclical stabilisers

Answer 13

Cut deficits on bad times

Question 14

(Higher) Taxes are a cost of doing business, so … inflation

Answer 14

Increase

Question 15

(Higher) Taxes reduce disposable income so … imports and … the current account deficit

Answer 15

decrease … reduce a surplus / widen a deficit