wow this is just strange....how does the budget effect resource allocation? (1 Viewer)

[y90]

how does the budget 2007-8 effect resource allocation. I spent about 5 hrs trying to work out and answer for this but couldnt find s***.

does it have anything to do with expenditure items? im so lost...and suicidal please help

 

[sk8ie_boi]

"How it effect resource allocation" ... isn't this question simply asking where has this year's govt. expenditure gone to?

 

[y90]

no its much more.

 

[williamc]

no its much more.

Expenditure= AD which consists of all injections into the economy.

Maybe you are overthinking the question. Logically it seems where the government spends its money. Although i havnt done topic 4 yet.