ECON 105 Lecture Notes - Lecture 3: Xm Satellite Radio

• School: Simon Fraser University
• Department: Economics
• Course: ECON 105
• Professor: Eldar Sehic

Document Summary

Ae = c + i + g + x m = y. T = total revenue transfer payments (tax revenue, public firms ) T = tr tp = ty t = t/ y = marginal propensity to tax (mpt) When pb > 0: it"s a primary budget surplus. When pb < 0: it"s a primary budget deficit. When pb = 0: it"s a balanced primary budget. Expansionary fiscal policy (efp): increasing go or decreasing t to increase y. Contractionary fiscal policy (cfp): decreasing go or increasing t to decrease y. Ae = co + io + go + byd (yd = y t = y ty = (1 t)y) Ae = co + io + go + b(1 t)y. Aeo = co + io + go z = b(1 t) Co = 10, b = 0. 8, io = 20, go = 25, t = 0. 25. = co + byd + io + go.