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What are ways that governments are different than households? How do these differences result in needing to treat government deficits differently than households being in

  1. What are ways that governments are different than households? How do these differences result in needing to treat government deficits differently than households being in debt?
  2. Do economists generally support requiring the Federal budget be balanced(Spending equals Tax revenue) each year?Why or Why Not?
  3. When would Fiscal Policy be the most effective at increasing output?Why?List as many examples as you can.
  4. What is the formula for Government Savings (S_g)?
  5. When would Fiscal Policy be the most effective at increasing output?Why?List as many examples as you can.

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