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Define inflation tax (also called seignorage). How does the government collect this tax, and who pays it?
In what ways is the government debt a potential burden on future generations.
Why do economists suggest that tax rates be kept roughly constant over time, rather than alternating between high and low levels?
Which type of tax rate most directly affects how wealthy a person feels? Which type of tax rate affects the reward for working an extra hour?
Define automatic stabilizer and give an example. What advantage do automatic stabilizers have over other types of taxing and spending policies?
What are the three main ways that fiscal policy affects the macroeconomy? Explain briefly how each channel of policy works.
How is government debt related to the government deficit? What factors contribute to a large change in the debt-GDP ratio?
Explain the difference between the overall government budget deficit, the current deficit, and primary current deficit. Why are three deficit concepts needed?
What are the major components of government outlays? What are the major sources of government revenues?
What is the nominal value of seignorage over the year? Suppose that deposits pay a market rate of interest. Who pays the inflation tax and how much do they pay?
What is the maximum amount of seignorage revenue? Draw a graph with real seignorage revenue on the vertical axis and inflation on the horizontal axis.
What is the current debt-GDP ratio? Will the government someday have to run a primary surplus to repay its debts, or can it avoid repayment forever?
Find the largest nominal deficit that the government can run without raising the debt-GDP ratio.
Do changes in oil prices always hurt the U.S. economy? How the U.S. Economy Has Coped with Oil Price Fluctuations?
How can we determine what factors cause recessions? Two Approaches to Determining the Causes of Recessions?
What does the behavior of prices in consumer markets demonstrate about how quickly prices adjust in the U.S. economy?
What macroeconomic or political factors have caused the changes you observe in the deficit measures?
What is the cyclical behavior of the Federal deficit? Repeat this exercise for the deficits of state and local governments.
How do Federal and state/local governments compare in terms of (a) growth of total spending and taxes over time and (b) the tendency to run deficits?
Discuss the growth rate of nominal GDP and the nominal interest rate. Show that, if the primary deficit is zero, the change in the debt-GDP ratio equals.
Research the Oil/Petroleum industry's price elasticity of supply and demand. - Is price elasticity of demand considered elastic or inelastic?
What recommendations would you make to Congress and the President for the management of fiscal policy in the next few years? Why?
I need assistance with understanding fiscal policy and the concerns on which the US government bases its spending and taxation decisions.
Is our current unemployment rate is above or below "full employment." What fiscal or monetary policies can be used to increase employment
Question: How can fiscal policy be used to correct a recessionary GDP gap? What are some complications?