Macroeconomics

1.

What was unusual about U.S. fiscal policy from

1980 to 1995?

2.

Why do many economists project increasing

budget deficits and government debt over the

next several decades?

3.

Describe four problems affecting measurement

of the government budget deficit.

4.

According to the traditional view of government

debt, how does a debt-financed tax cut affect

public saving, private saving, and national saving?

Q U E S T I O N S   F O R   R E V I E W

5.

According to the Ricardian view of government

debt, how does a debt-financed tax cut affect

public saving, private saving, and national saving?