Macroeconomics Unit Chapter 14

BUDGET DEFICIT: when expenditures exceed revenue• Expenditure: an amount of money spent• Revenue: income

EOC study guideMacroeconomics #14

BUDGET SURPLUS: when revenue exceeds expenditures

Fiscal year DeficitDeficit as share of GDP

20091,412,688,000,000

9.8 percent

20101,294,373,000,000

8.8 percent

20111,299,593,000,000

8.4 percent

20121,086,963,000,000

6.8 percent

2013 679,502,000,000 4.1 percent

Source: http://www.politifact.com/wisconsin/statements/2014/sep/05/barack-obama/obama-says-he-has-cut-national-deficit-half/

Gross domestic product (GDP) is a measure of the income and expenditures of an economy

GDP is the total market value of all final goods and services produced within a country in a given period of time

Source: http://taxfoundation.org

Congress and the President!!! If the economy slows down, there is

less tax revenue• It takes time to adjust Federal spending

If war breaks out, spending increases

Sometimes There’s Unforeseen CostsSometimes There’s Unforeseen Costs

Lobbyists can impact spending—spending in 2012

Source Open Secrets.org

National Debt: the sum of all past deficits and surpluses

•Currently: Over $18,009,111,000,000!approx. $56,383 per citizenor $153,726 per taxpayer

EOC study guide

Macroeconomics #15

Source: www.cbo.gov/sites/.../budgetinfographic.pd..

://www.youtube.com/watch?v=3ugDU2qNcyg