ECON 1020 Chapter Notes - Chapter 24: Business Cycle, Fiscal Multiplier, Transfer Payment

40 views3 pages

Document Summary

Cfo ch 24: the government and fiscal policy. Fiscal policy- the government"s spending and taxing policies (budget policy) Policies concerning government purchases of services and goods. Monetary policy- the behavior of the federal reserve concerning the nation"s money supply: government in the economy. Discretionary fiscal policy- changes in taxes or spending that are the result of deliberate changes in government policy: government purchases (g), net taxes (t), and disposable income (yd) Net taxes (t)- taxes paid by firms and households to the government minus transfer payments made to households by the government. Government purchases (g)- government purchases of goods and services. Disposable, or after-tax income (yd)- total income minus net taxes. Disposable income total income (y) minus net taxes (t) Assuming that taxes do not depend on income. Budget deficit- the difference between what a government spends and what it collects in taxes in a given period. Budget deficit g - t: adding taxes to the consumption function.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

Related Questions