2. US Deficit FY2009: $1.2 trillion = 8% of GDP US Debt = $10 trillion US GDP = $13.84 trillion
3. Deficit If Expenditures > Revenues you have DEFICIT Expenditures – Revenue = Deficit Money in - Money out = Deficit $700 - $800 = - $100 Your Deficit is $100
4. Surplus If Revenues > Expenditures you have SURPLUS Revenue – Expenditure = Surplus Money in - Money out = Surplus $800 - $700 = $100 Your surplus is $100
5. GDP? GDP is the GROSS DOMESTIC PRODUCT GDP is the total output of all economic activity in a nation including goods and services Health care expenses +Durable goods (microwaves, hair dryers, cars) +Mining activities +Food (PIZZA) +Lawyers fees +All other economic output GDP
6. Debt? Debt is the total of all deficits – surpluses
