Macroeconomics Unit Chapter 14
 BUDGET
EOC study guide
Macroeconomics #14
DEFICIT:
 when expenditures exceed revenue
• Expenditure: an amount of money spent
• Revenue: income
BUDGET SURPLUS:
when revenue exceeds
expenditures
Fiscal year
Deficit
2009
2010
2011
2012
2013
2014
1,412,688,000,000
1,294,373,000,000
1,299,593,000,000
1,086,963,000,000
679,502,000,000
483,000,000,000
Deficit as share of
GDP
9.8 percent
8.8 percent
8.4 percent
6.8 percent
4.1 percent
2.8 percent
Source: http://www.politifact.com/wisconsin/statements/2014/sep/05/barackobama/obama-says-he-has-cut-national-deficit-half/
 Gross
domestic product (GDP) is a
measure of the income and expenditures
of an economy
 GDP is the total market value of
all final goods and services produced
within a country in a given period of time
Source: http://taxfoundation.org
 Congress
and the President!!!
 If the economy slows down, there is less
tax revenue
• It takes time to adjust Federal spending
 If
war breaks out, spending increases
What if There are Unforeseen Costs?
 Lobbyists
can impact
spending—
spending in
2012
Source Open Secrets.org
 National
Debt: the sum of all past
deficits and surpluses
• Currently: Over $18,611,073,500,000!
 approx. $57,768 per citizen
 or $155,926 per taxpayer
Source:
www.cbo.gov/sites
/.../budgetinfogra
phic.pd..
John Green on the Debt 2012