ECF2331 Lecture Notes - Lecture 7: Real Interest Rate, General Equilibrium Theory, Classical Economics
21 Jun 2019
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Chapter outline: the government budget: some facts and figures, government spending, taxes, and the macroeconomy (see also 11. 3, pgs. 451-454: government deficits and debt, deficits and inflation (only pages 632-633 covered) Facts and figures: government revenue, government outlays. Interest paid to holders of government bonds less interest received by the government: government makes loans to students, farmers, small businesses, government outlays. Week 7 - chapter 15 government spending and its financing: comparing australian government spending to that of other countries shows that australia spends less as a percentage of gdp than almost any other. Oecd country: government revenue/taxes, personal taxes (income taxes and property taxes, contributions for social insurance, taxes on production and imports, corporate taxes, deficits and surpluses, deficit: when outlays > revenues, surplus: when revenues > outlays. = [government purchases + transfers + net interest] tax revenues. = (g + tr + int) t: deficits and surpluses, primary deficit = outlays - tax revenues - net interest.
