00:01
Explain why the government's budget deficit might be in a large deficit.
00:06
What would the effect on aggregate demand be if the government cut public spending by 10 %? so the economic objectives of the greek government were having a low but stable inflation.
00:54
Reducing the inflation rate to roughly 2 % will help in boosting the government's economy, which thereby increases the circulation of funds within the country.
01:03
And this will impact the budget.
01:05
And the other objective was enhancing sustainable growth.
01:19
Combined this with a low rate of inflation, the economy runs smoothly, which thereby enhances productivity and leads to sustainable growth in the long run.
01:36
So why the government's budget deficit might be in a target deficit.
01:40
The high rate of inflation in greek has significantly impacted the economic activities.
02:17
And this has reduced the amount of revenue.
02:29
The government expenditure has not changed and it's notably increasing.
02:34
This is the main reason for greeks ' budget deficit in budget, which is a target deficit...