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1 Introductory concepts 2  Market mechanism  3 Elasticities  4 Market structures 5  Market failures  6  Macro economic activity/eco growth  7 Inflation 8  Employment & unemployment  9  External Stability  10  Income distribution 11.Factors affecting economy  12  Fiscal/Budgetary policy  13  Monetary Policy   14 Aggregate Supply Policies  15 The Policy Mix

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Budget outcomes

With every budget there can be three possible outcomes.  To simplify, assume that the government raised exactly $300B in taxes in order to fund the provision of the services which cost $300B.  This would result in a 'balanced budget'.  

budget balance

Receipts (revenue) = outlays (expenses)

However, if the government raised $290B from taxes, but still wanted to spend $300B on government services, then it would result in a 'budget deficit'.

budget deficit

Receipts (revenue) < outlays (expenses)  

Alternatively, if the government raised $310B from taxes, and only spent $300B on government services, then it would result in a 'budget surplus'.

budget surplus

Receipts (revenue) > outlays (expenses)  

To view the latest budget outcomes go to  the Australian Government’s budget website.

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