Video Cases - Part IV

These questions are based on videos from the Canadian Broadcasting Corporation that accompany the textbook. In addition to whatever in-class use your instructor may have given them, they're available on this website for online viewing. If directed to do so by your instructor, you can answer the questions online and email the results.
     These videos are intended only for students using the 9th Canadian Edition of Macroeconomics. To view the video, you'll require a password. Refer to page 42 in your textbook and use the first word appearing in the main text column as both 'username' and 'password.' Use of the word is case-sensitive.
     The free RealPlayer plug-in is required in order to view the videos. If needed, the plug-in can be downloaded from Real.

Finance Minister Paul Martin talks with CBC’s Brian Stewart about his February 2000 budget. The interview deals with why the focus of tax cuts and spending were where they were, particularly, as Paul Martin says several times, he wishes his budget will help " Canada to be on the leading edge of the New Economy." The minister explains what he believes are the priorities in positioning Canada to be a successful player in today’s emerging global economy. He suggests that across-the-board tax cuts, and debt reduction, as well as increased funding for post secondary education, research and development and the environment are the keys to long-term economic growth.

Concepts covered: Fiscal Policy, Aggregate Supply, Aggregate Demand, Taxation, Economic Growth, Productivity.

Before answering the following questions, you may want to refer to the Ministry of Finance’s website at http://www.fin.gc.ca/fin-eng.html .

Required: 1) Watch the video carefully 2) Read the key economic concepts found on pages 3-4 of the text 3) Answer the questions below, either individually or as part of a small group.

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View Paul Martin Junior

1		Comment on how each of Finance Minister Paul Martin’s suggested policies to promote long-term economic growth by affecting aggregate supply.
2		What fiscal policy actions does the finance minister make in order to increase the level of aggregate demand that brings about the economic growth made possible by an increase in aggregate supply?
3		With this budget, Paul Martin takes actions to help stimulate both aggregate demand and aggregate supply. Which are the more important effects in the long run, the budget’s impact on aggregate supply or on aggregate demand? Explain.
4		Review the latest economic and fiscal update or budget information by accessing the Ministry of Finance’s website at http://www.fin.gc.ca/fin-eng.html. What fiscal policy actions is the government taking in order to support the Canadian economy? Your answer should state how these actions affect aggregate demand and/or aggregate supply.