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GSU - ECON 2105 - CHAPTER 15 OF MACROECONOMICS - Class Notes

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GSU - ECON 2105 - CHAPTER 15 OF MACROECONOMICS - Class Notes

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background image Macroeconomics Chapter 15 Vocabulary  Transfer Payments:  Payments made to groups or individuals were no good or service is received in 
return.
Government Delays: Part of the government budget that includes both spending and transfers 
payments.
Mandatory outlays: Comprise government spending that is determined by ongoing long­term 
obligations.
Medicare Income Tax Social Security Discretionary Outlays: Comprise spending that can be altered when the government is setting it's annual 
budget. 
Social Security: A government administered to retirement funding program.  The goal of social security is a guarantee that no American worker retires without 
at least some retirement income.
Medicare: A mandated federal program that finds healthcare for US citizens age 65 or older. The goal is to ensure that all retired workers have some funding for their 
healthcare.
Progressive Income Tax System:  People with higher incomes pay larger portion of their income in taxes than 
people would lower incomes do.
Marginal Tax Rate: The tax rate paid on an individual snacks dollar of income.  Marginal tax rate increases with higher earnings with a progressive tax system. Average Tax Rate: A total tax paid divided by the amount of taxable income. Will be less than the marginal tax rate due to progressive tax system.
background image Budget deficit: Occurs when government outlays exceed revenue.  Budget Surplus: Occurs when government revenues exceed outlays.  Funding is flowing in and out. Debt: The sum total of accumulated budget deficits.  Part of the debt is owed to the public.  Part of the debt is owed to the government agencies. Austerity: Involves strict budget regulations amps at dipped reduction. From PowerPoint and Lecture Notes Income text sources: 1. Individual income tax 
2. Corporate income tax 
3. Social Security [Both Social Security and Medicare are paid for with taxes on employees pay. 
Demographic changes on the main reason why Social Security and Medicare currently 
make up such a large portion of the budget. ] 1. Deficits growing outlays increase our revenues decrease or both 
2. Deficits tend to grow during the session a periods.
3.  Recent U.S. budget deficits are large in historic context. Practice what you Know Questions 1. National Debt is the sum of yearly budget deficits.
2. Which of the following is part of mandatory outlays? Social Security. 
3. Income taxes in the United States can be described as progressive
4. Security and Medicare outlays have increased in size recently.
Quiz Government outlays include  1. Unemployment benefits 
2. The construction of a new highway 
3. Interest payments on US treasury bonds

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School: Georgia State University
Department: Economics
Course: Principles of Macroeconomics
Professor: Brian Hunt
Term: Fall 2015
Tags: Macroeconomics
Name: CHAPTER 15 OF MACROECONOMICS
Description: These notes are from in class notes, the book, quizzes, and the powerpoint from this chapter.
Uploaded: 02/29/2016
3 Pages 37 Views 29 Unlocks
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