Government Budgets and Fiscal Policy
Discover how government budgets and fiscal policy affect the economy, including government spending, taxes, deficits, and the use of fiscal policy to fight recession, inflation, and unemployment.
Introduction to Government Budgets and Fiscal Policy
Government Spending
Total U.S. Government Spending
State and Local Government Spending
Key Concepts and Summary
Federal Taxes
State and Local Taxes
Key Concepts and Summary
Federal Deficits and the National Debt
Debt/GDP Ratio
The Path From Deficits to Surpluses to Deficits
Key Concepts and Summary
Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
Expansionary Fiscal Policy
Contractionary Fiscal Policy
Key Concepts and Summary
Automatic Stabilizers
Counterbalancing Recession and Boom
The Standardized Employment Deficit Or Surplus
Key Concepts and Summary
Practical Problems With Discretionary Fiscal Policy
Fiscal Policy and Interest Rates
Long and Variable Time Lags
Temporary and Permanent Fiscal Policy
Structural Economic Change Takes Time
The Limitations of Fiscal Policy
Political Realties and Discretionary Fiscal Policy
Discretionary Fiscal Policy: Summing Up
Key Concepts and Summary
The Question of a Balanced Budget