1) Explain the difference between a budget deficit and the national debt.
2) Use the Marginal Income Tax Rates in Figure 15.6 (see p. 463) to compute the following:
3) Greece, Ireland, Portugal, and Spain all went through national budget difficulties in recent years. Use the data below to answer questions regarding the sovereign debts of these nationals (All data comes from the OECD and is in billions of current US dollars.).
4) Explain the differences between typical demand side fiscal policy and supply side fiscal policy. For each of the following fiscal policy proposals, determine whether the primary focus is on aggregate demand or aggregate supply or both.
5) Fill in the blanks in the table below. Assume that the MPC is constant over everyone in the economy.
|MPC||Spending multiplier||Change in Government Spending||Change in Income|