Difference measures the government budget deficit or surplus

Assignment Help Business Economics

Reference no: EM131424583

a. In the long-run model, the difference (T-G) measures the government budget deficit or surplus. Explain the difference between the budget deficit and the trade deficit. What type of policy would reduce a budget deficit? What type of policy would reduce a trade deficit? Base your discussion should on the insights from chapters 3 and 6 of the Mankiw text. b. Look at the historical data for the U.S. budget deficit. Cite your source. For a historical view, consult the table from the Economic Report of the President (https://www.whitehouse.gov/omb/budget/Historicals (Links to an external site.)). Briefly describe the historical trend and the future outlook for the U.S. budget.

Reference no: EM131424583

Questions Cloud

Determine the labor force and the number of employed : Suppose that the labor force participate rate is 79%, the total working-age population is 100 million, and the number of unemployed is 2.5 million. Determine: (i) the labor force; (ii) the number of employed workers; (iii) the unemployment rate; and ..

What is the opportunity cost of apples in terms of bananas : Home has 600 units of labor available. It can produce two goods, apples (QA) and bananas (QB). The unit labor requirement in apple production is 3, while it is 2 in banana production. Graph Home’s production possibilities frontier with the production..

What are the implications of the informal economy for firms : What are the implications of the informal economy for firms that operate only in the formal economy? Identify and assesses the context of the problem presented in the Heinz and Beechnut merger case. How do changes in the value of the U.S. dollar affe..

Discuss various ways inflation can hinder economic activity : Discuss the various ways inflation can hinder economic activity. What are some strategies you might use in your life to deal with rising inflation? How might these strategies change if we experienced deflation?

Difference measures the government budget deficit or surplus : In the long-run model, the difference (T-G) measures the government budget deficit or surplus. Explain the difference between the budget deficit and the trade deficit. What type of policy would reduce a budget deficit?

Countries trade-which country will have a higher wage : Assume that Home can produce two goods, apples and bananas. The unit labor requirement in apple production is 4, while it is 2 in banana production. Foreign’s unit labor requirement for applies is 8 and it is 2 for bananas. If these countries trade, ..

Relative demand curve along with the relative supply curve : Now suppose world relative demand takes the following form. Demand for apples/demand for bananas = price of bananas/price of apples. Graph the relative demand curve along with the relative supply curve.

Value of the dollar prompt foreign manufacturers : Why would a decline in the value of the dollar prompt foreign manufacturers such as BMW to build production plants in the United States?

Gdp deflator as a measure of inflation for households : The GDP deflator is the broadest, most inclusive measure of change in the country’s price level, since it includes all final goods and services produced and sold. What is the shortcoming of the GDP deflator as a measure of inflation for households, a..

User Account

All Pages