Econ 104 1st Edition Lecture 28 Outline of Last Lecture I Characteristics of Bonds II Government Multiplier III Fiscal Policy Response to Recession IV Fiscal Policy Response to Inflation Outline of Current Lecture II Tying up Loose Ends of the Course III Government Debt and Deficit IV Fiscal Policy and Great Recession Current Lecture I II III IV Fiscal Policy and the Great Recession a Congress passed the American Recovery and Reinvestment Act ARRA of 2009 ARRA i 840 billion package of spending increases and tax cuts ii The largest fiscal policy action in US history iii Approximately 2 3 of the stimulus increased government expenditures and took the form of tax cuts The Government Debt and the Deficit a Deficit T G 0 b Surplus T G 0 c Debt add all surplus and deficit together and it is still less than 0 Composition of Federal Government Revenue 2012 a Individual Income Taxes 42 7 b Social Insurance Taxes 35 c Corporate Incomes Taxes 13 9 d Other Taxes and other sources of revenue 8 5 Composition of Federal Government Expenditures 2012 a Transfer Payments 46 4 b Defense Spending 21 7 c Grants to state and local governments 12 6 d Interest Payments 11 2 e Other Expenditures 8 2 These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute
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