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31. Define discretionary fiscal policy, nondiscretionary fiscal policy.32. Write down the equation for the government budget. When the U.S. government’s budget is in deficit, are tax revenues greater than or less than government expenditures?33. What do we mean by “automatic stabilizers”? How do these affect the government’s budget?
34. Define government spending multiplier, tax multiplier. Explain.The G. Purchases Multiplier: change in equilibrium real GDP / change in Gchange G x multiplier = change equilibrium real GDP (A to E)Suppose Congress and President decide to cut taxes instead. Yd (increase) = NI – taxes