Government Finance and the Level of Income

J. Harvey and M. Johnson
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J. Harvey: University of Reading
M. Johnson: Hatfield Polytechnic

Chapter 11 in Introduction to Macro-Economics: A Workbook, 1973, pp 60-62 from Palgrave Macmillan

Abstract: Abstract Government spending on goods and services (as distinct from transfers) acts, like investment, as an injection into the circular flow, whereas taxation, like saving, acts as a leak. Thus budgetary policy can be used to manage the flow of AD (see Chapter 14).

Keywords: Government Expenditure; National Income; Government Spending; Capital Gain; Unemployment Benefit (search for similar items in EconPapers)
Date: 1973
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DOI: 10.1007/978-1-349-01871-0_11

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