Chapter15LectureNotesSAK

Chapter15LectureNotesSAK - Intermediate Macroeconomics...

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Unformatted text preview: Intermediate Macroeconomics Chapter 15: Government Debt Instructor Geoffrey Williams Rutgers University June 26, 2009 Instructor Geoffrey Williams Chapter 15: Government Debt Outline Instructor Geoffrey Williams Chapter 15: Government Debt Debt vs Deficit Government deficit is the difference between revenues (taxes, tariffs, etc) and costs in any single period. The expected US federal deficit for 2008 was $410 billion. Government debt is the accumulated obligations of the government (usually due to previous budget deficits). The government debt for 2007 held by the public was $5 trillion. Instructor Geoffrey Williams Chapter 15: Government Debt The Numbers Updating from Mankiw (p. 432), the US federal debt is $5 trillion. Dividing by a US population of 306 million people, we get $16,340 per person. Not a small number, but as Mankiw points out, when we compare it to the average persons lifetime earnings (more than $1 million) it seems a little smaller. Instructor Geoffrey Williams Chapter 15: Government Debt The Numbers Updating from Mankiw (p. 432), the US federal debt is $5 trillion. Dividing by a US population of 306 million people, we get $16,340 per person. Not a small number, but as Mankiw points out, when we compare it to the average persons lifetime earnings (more than $1 million) it seems a little smaller....
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This note was uploaded on 02/29/2012 for the course 320 322 taught by Professor Macro-williams,micro-yoshi during the Fall '10 term at Rutgers.

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Chapter15LectureNotesSAK - Intermediate Macroeconomics...

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