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Macro 17

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Gale Pooley

Macro 17

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Lecture 17 Macroeconomics
Opening Prayer
Quiz Master
Economics Club Marin Ama marinama123@go.byuh.edu Activities Have Fun, Get Smart
Chapter 17 The Government Budget Taxes and Spending
Two Objectives Unemployment Inflation
Monetary Central Bank Tools Reserve Ratio Discount Rate Open Market Excess Reserve Rate Fiscal Government Tools Taxes Spending Aggregate Demand Aggregate Demand Aggregate Supply
Tax Revenues Income Taxes Social Security Taxes Other
Types Per Head Flat Progressive
Corporate Tax Rate 21% Flat Rate
Progressive The more you earn, the higher the rate
Types Income Sales VAT Property Excise
Deficits and Debt Government Spending and Revenue
Deficit Spending greater than revenue
Balanced Budget Spending exactly equals revenues
Surplus Revenue greater than spending
Debt Accumulated deficits
Debt $24 trillion $72,700 per person
Why would you want government to go into debt? Don’t have to pay Future larger economy
Debt Investment Only if the return is higher than the interest rate

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