Macroeconomics

Make sure you show all your work for the problems requiring calculations.Otherwise, you will not receive credit for the question.

1.Define/explain the following:

a.What are the three goals of fiscal policy?

b.Discretionary Fiscal Policy

c.What the Laffer curve shows.

d.Automatic fiscal policy

2.List the:

a.Sources of U.S. tax revenue in order, largest to smallest.

b.List the categories of federal government outlays from largest to smallest.

Component Personal income taxes Social Security taxes Corporate income taxes Indirect taxes Transfer payments Expenditures on goods and services Debt interest Dollars (billions) 950 400 200 50 1000 500 300 \fYear Government Tax Revenues (billions) Government expenditures (billions) 1 4200 4400 2 4600 4500 3 4700 4700 4 4500 4400 5 4000 4300