Lecture_22_2010_M - Intermediate Macroeconomics Bruce...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Intermediate Macroeconomics Bruce Preston April 15, 2010 Today Fiscal matters Chapter 15 Next week: readings on-line Baby-sitting Financial Crisis: Chapters 14 and 15 Zero lower bound and Japan The Short-Run Model Comprises two key relations: \ w = d 3 e p ( < w 3 < ) 3< Aggregate Demand < w = < w 3 1 + y \ w + r 3< Aggregate Supply Some Fisca Mate s: On G and T Thus fa it e has ben said on the detai s of gove nment spending and evenues Not t ivia : in 2005 tota spending by a eve s of gove nment was $4.6 t i ion $15,000 pe pe son Gove nment Budget The budget ba ance is the di e ent betwen ta evenues and spending T G Budget su p us if T G > Budget decit if T G < Budget ba anced if T = G Financing Decits If the budget is in decit: gove nment must bo ow isues gove nment bonds which a e a p omise to pay a specied amount at specied ho izon tota outstanding stock of bonds in ca ed the gove nment debt Sustainabi ity of the Pub ic Debt In 2005: tota Fede a debt was $4.7 t i ion o $15,000 pe pe sonIn 2005: tota Fede a debt was $4....
View Full Document

Page1 / 7

Lecture_22_2010_M - Intermediate Macroeconomics Bruce...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online