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Actual budget deficit or surplus may differ greatly from full-employment budget deficit or surplus estimates.
17. EVALUATING FISCAL POLICY
In Figure 12-4(b), the government reduced tax rates from T₁ to T₂, now that there is a full-employment deficit.
1.

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A brief history of Pakistan's economic development

20 This US aid − a result of Pakistan-United States Mutual Defense Pact signed in 1954 − reduced the heavy burden of public expenditure on the budget of the public sector (Hasan, 1997). 21 Nafziger (2012) and Hussain (2003). 22 [Hasan (1997) and Zaidi (2005). 23 Hasan (1997), Zaidi (2005) and Fasih-Uddin and Swati (2009).

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more job opportunities etc. Since 2013-14, the economy has witnessed a smooth upward trend in growth rate. Real GDP growth was above four percent in 2013-14 and has smoothly increased during the last four years to reach 5.28 percent in 2016-17, which is the highest in 10 years. It is widely acknowledged that Pakistan has