Macroeconomics Notes 2-7-08

Macroeconomics Notes 2-7-08 - Macroeconomics Notes 2/7/08...

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Macroeconomics Notes 2/7/08 - Today the scope of government functions has expanded enormously beyond the traditional ones - Today the federal government provides: 1. Goods and services 2. Social Security and unemployment benefits 3. Welfare 4. Transfers to state and local governments - Federal government expenditures are financed by: o Personal income taxes o Corporate income taxes o Social Security taxes - State and local governments provide: o Goods and services o Welfare benefits - State and local government expenditures are financed by: o Sales tax o Property taxes o State and local income taxes - If government expenditures exceed government revenues, then there is a budget deficit - Bush proposed a $3 trillion dollar budget o Budget deficit of $8.2 billion budget deficit o $400 billion dollars added to the national debt o Current national debt is about $8-9 trillion
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- As far as other countries are concerned, the US bond is a very safe investment because the US has never defaulted - In 1971 the US found itself in a tight situation when the US dollar was convertible into
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This note was uploaded on 04/12/2008 for the course ECON 100 taught by Professor Park during the Spring '07 term at American.

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Macroeconomics Notes 2-7-08 - Macroeconomics Notes 2/7/08...

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