largest category was health care social services and education then

Largest category was health care social services and

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largest category was health care, social services and education then transportation and housing largest tax cuts was individual then infrastructure the changes were made to be temporary
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The actual movements in RGDP and employment is hard to measure just from the stimulus alone. CBO tried to measure it. They determined it helped but only by a small amount. Without ARRA reduced unemployment from 11.4 to 10% but that was all increased government debt made the deficit worse and hurt us more during recession Keynesian theory John Keynes argued the government purchase multiplier might be greater then 10. (it is now proved to be less then 2) They also developed the tax multiplier declares fiscal policy is necessary deficit, surplus, and debt when we say deficit we mean money against revenue lost in one year, while debt is all money owed budget deficit the situation where the government expenditure are greater then tax revenue budget surplus the situation where the government expenditure are less then tax revenue we are usually in deficit (except for 2001) cyclically adjusted budget deficit or surplus means the deficit or surplus in the fed government budget if the economy were at potential GDP when GDP is above potential more taxes are paid and there are lower transfer payments causing total spending to rise less then it would have reducing too high inflation few believe the government should balance there budget every year , they would have to mess with taxes every year some economists agree that a deficit is normal, if it is over long run bills because we should take a while to pay for a house for example every time the federal government runs a budget deficit the treasury must borrow funds from investors by selling treasury securities Budget deficit = (T- G) < 0 Budget surplus = (T-G) > 0 Debt= sum of deficit + surplus Is the national debt a problem Total value of US treasury bond outstanding is called the federal government debt or national debt If debt is high you will have to cut back ultimately the government can raise through taxes what it needs to make up debt interest payments but if that gets to high it can hurt consumption and RGDP Interest payment is currently at 11% which the federal expenditure which is "good" if some of the debt was brought about through infrastructure such as bridges or education it can help the economy in the end the government just needs to watch out for the size of GDP relative to the interest rate. This is way problems can occur
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