Describe themultipliersused for calculating the change in output resulting from a change in government spending?

Discuss and explain expansionary fiscal policy tools the government usesto expand an economy that is in a recession?

Describe tenways the government can finance its expenditures?

Discuss thelargestfive sources of federal revenues and categories of federal outlays

Explain fiverole the size of the economy (GDP) have to play in whether or not a government deficit is burdensome to the economy

Discuss and explainrole playedby automatic stabilizers and discretionary fiscal policiesin the emergence of budget surpluses during the late 1990s?

Are tax cuts always directed at stimulating aggregate expenditure? Explain why some supply-siders think tax cuts may actually increase tax revenues.

Discuss and explain fivedifferences between a cyclical deficit and a structural deficit.

Explain the difference between "crowding out" and "crowding in.

Suppose in a simple economy with no foreign sector, the mpc equals 0.8. Intended investment spending has suddenly fallen, reducing AE and output to a level that is 100 million below Y*.

a. If the government decided to try to get the economy back to full employment using only an increase in government spending (G), by how much would G need to be increased?

b. If the government, instead, decided to try to get the economy back to full employment using only a lump-sum tax cut (T), how big of a tax cut would be needed?

c. Alternatively, if the government decided to try to get the economy back to full employment using only an increase in transfers (TR), how large would this increase need to be?

d. Which fiscal policy--increasing G, decreasing T, or increasing TR--would do the least amount of damage to the government budget deficit?