Fiscal Policy Lecture Slides

President Trump

President Obama

President Bush Jr.

President Clinton

Social Security, Government Salaries, Interest on Debt

Social Security, Military, Education

Medicare (Health insurance for elderly), Military, Government Salaries

Social Security, Medicare (Health insurance for elderly), Medicaid (Health Insurance for the poor)

The Federal Reserve

The Federal Government

Inverse to GDP, so declining

Following GDP, so rising

nothing, there is no relationship to GDP and the unemployment rate

The business cycle

Supply & demand

Production Possibilities Curve

Circular Flow Model

Peaks and expansion

Troughs and recession

Peaks and depression

Contraction and expansion

The government is usually taking in less tax revenue, but at the same time spending less.

The government is usually taking in more tax revenue, but at the same time spending less.

The government is usually taking in less tax revenue, but at the same time spending more.

The government is usually taking in more tax revenue, but at the same time spending more.

$13 Trillion

$33 Billion

$38 Trillion

$0

The total amount of money borrowed by state governments.

The total amount of money borrowed by U.S. citizens.

The total amount of money the U.S. government has borrowed over its history.

The total amount of money borrowed by private corporations.

It measures the interest rate on the national debt.

It reflects the total amount of debt held by foreign investors.

It shows the burden of debt relative to the country's economic output.

It indicates the total amount of debt held by the public.

Increased government spending and decreased tax revenue.

Increased exports and decreased imports.

Decreased government spending and increased tax revenue.

Decreased unemployment rates.

It would increase the national debt.

It is illegal under the U.S. Constitution.

It would lead to inflation and devalue the currency.

It would decrease the national debt.

Reduce Unemployment

Reduce Inflation

Reduce Taxes

Increase Government Spending

Inflation and Unemployment are both low while GDP is high

Inflation is high, unemployment low, and GDP high

Inflation and unemployment are both high, while GDP is low

Expansionary increases government spending and/or decreases taxes, while contractionary decreases government spending and/or increases taxes.

Expansionary decreases government spending and increases taxes, while contractionary increases government spending and decreases taxes.

Both policies increase government spending and decrease taxes.

Both policies decrease government spending and increase taxes.