The Government's expenditure it affects the business cycle, the security situation of social and political goals. Note, the revenues (T) and (G) the budget does not include loans and pay.There are 3 status of the Government budget balance (T-G)If T > G called the budget surplusIf T < G called the budget deficitIf T = G called balancing the budgetIf Government spending G > t. means it help the Government boost the economy increased the company's investment, but the Government will have to deal with the budget deficit.If Government spending G < T. That is, the Government is the process of deflation to affect the economy. It will improve the Government's finances.Apply to the PNJ, if in case of increased government spending G and it will increase aggregate demand. When demand increases, PNJ need to increase the production of the product to meet the needs of the market.
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