ECON 102 Study Guide - Quiz Guide: Unemployment Benefits, Xm Satellite Radio

• School: UBC
• Department: Economics
• Course: ECON 102
• Professor: Robert Gateman

Document Summary

Chapter 22: national income and expenditures (g and nx) = government spending - transfer payments + government investment. Hire public servant, buy office supplies, buy fuel for canada armed forces, hire consultants. Add directly to demand for current output of goods and services. Welfare, employment-insurance benefits, personal income tax, corporate income tax, Affect aggregate desire expenditure but only through how they then influence firm and household spending. Keep the assumption that g doesn"t automatically change as gdp/c changes. Yd = disposable income = income - taxes. Some investments are under government because we track government spending. Use of government taxes and spending policies to achieve government objectives (ye) Increase in net taxes when ye increases by . G budget = government revenues - government purchases = t - g. If there is a deficit, circular flow diagram is up by E. g government puts in 100 and takes out 70 so up by 30.