i think thats pretty self explanotary.... if u havnt done anything, then u havent done anything! therefore its neutral.....
but ill try to elaborate...... if you spend a significant amount of money, its considered an expansionary policy... if u incerase ur 'savings' its considered contractionary as you are going oout of ur way to avoid stimulating demand... however, when u dunt spend anything... u arent doing anything ( u reffering to the governemnt), and are considered neutral.... but beware, sometimes there are mildy expansionary/contractionary fiscal runnings... like the last one....
QUESTION.
when referring to the last budget, how would u talk about it? i mean it was just clever accounting that made it look like a "surplus" but taking into account the extra revenue in taxes etc, it was spending spree and a half... do u integrate political issues to discard any economic analysis that may be contradictory to the whole economics course???? shitti governemtn...
