Whats a Gross Domestic Product? Broccoli? I was gonna say
Preparation H. So gross means broccoli, Preparation H, and the
entire sum of all products produced in a year from apples to
zucchini. Incidentally, applying Preparation H below the eyes, will
take away puffiness under your eyes.
Slide 3
U.S. China Japan Germany France U.K Brazil Italy India Canada
Russia Spain Mexico South Korea Australia 0 1 2 3 4 5 6 7 8 9 10 11
12 13 14 Comparative GDPs in Trillions, 2010 14.5 5.8 5.4 1.5 1.5
2.2 2.5 3.3 2.0 2.0 1.4 1.4 1.4 1.0 1.0 924 1.7
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nom
inal)
Slide 4
Slide 5
U.S. China Japan Germany France U.K Brazil Italy India Canada
Russia Spain Mexico South Korea Australia 0 1 2 3 4 5 6 7 8 9 10 11
12 13 14 Comparative GDPs in Trillions, 2010 14.5 5.8 5.4 1.5 1.5
2.2 2.5 3.3 2.0 2.0 1.4 1.4 1.4 1.0 1.0 924 1.7
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nom inal)
Calif. 1.9 TX 1.1 TX 1.1
Slide 6
Slide 7
Slide 8
The use of government spending and taxation to influence the
economy When the economy begins to suffer from serious recession or
inflation, politicians will almost always intervene to try to
improve the situation. Their interventions may or not be good
economicsoften they're notbut you can hardly blame the politicians
for trying. Nobody wants to go down in history like Herbert Hoover,
the president who became a widely hated figure for failing to use
the government aggressively enough to try to end the Great
Depression.
Slide 9
Falls into two broad categories: Expansionary
Policies-increased government spending & reduced taxes to
increase aggregate demand Contractionary Policies-decreased
government spending & increased taxes to decrease aggregate
demand
Slide 10
Difficulties exist in using fiscal policy to maintain economic
stability & foster economic growth. Much government spending is
fixed (entitlement programs such as welfare, Social Security,
Medicare) Only a small portion of the federal governments budget is
discretionary (available for use as needed or desired)
Slide 11
Predicting the impact of spending and taxing is difficult as is
predicting future economic performance Government spending &
taxing doesnt produce immediate results Economic conditions may
change Expansionary policies could result in inflation
Contractionary policies could result in recession
Slide 12
Coordinating federal spending & taxing w/ monetary policy
& w/ state policies is difficult & may be contradictory
Fiscal policy is subject to political pressures In the past,
expansionary policies have tended to be popular &
contractionary policies have tended to be unpopular
Slide 13
The imposition of government regulations may foster economic
benefits prohibiting unfair business practices providing consumer
protections Government regulations may also carry costs Reduced
corporate profits Slower economic growth