Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. CHAPTER 11 Fiscal Policy and Automatic Stabilizers: What Managers Need to Know
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 11-1 Categories of U.S. Government Taxation, 2006 Source: U.S. Economic Report of the President, 2006, p. 377 (accessed September 17, 2006).
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 11-2 Categories of U.S. Government Spending, 2006 Source: U.S. Economic Report of the President, 2005, p. 377 (accessed September 17, 2006).
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 11-3 Types and Maturities of Government Securities
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 11-4 Owners of U.S. Government Debt, 1981–2006 Source: Federal Reserve Bank of St. Louis, Economic Data—FRED II, (accessed September 17, 2006).
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 11-5 Effects of Government Borrowing in the Real Loanable Funds Market
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit M11-1 Crowding Out with Perfectly Elastic, Perfectly Inelastic, and an Upward-Sloping Supply of Real Loanable Funds
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 11-6 Effects of Increased Government Borrowing in the Real Goods Market
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit M11-2 Effects of Government Borrowing in the Real Loanable Funds Market
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 11-7 Budget Surpluses Increase the Supply of Real Loanable Funds
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 11-8 U.S. Government Deficits and Surpluses, 1970–2005 Source: The White House, Office of Management and Budget, 2005, from Federal Reserve Bank of St. Louis, Economic Data—FRED II, (accessed September 17, 2006).
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 11-9 Actual Deficit Active Deficit + Passive Deficit
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit Neutral Fiscal Policy: Active Deficit = 0
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit M11-3 Assumptions for Calculating the Active and Passive Deficits
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit M11-4 Actual Deficit = Active Deficit + Passive Deficit
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit M11-5 Neutral Fiscal Policy: Active Deficit = 0
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit Expansionary Fiscal Policy: Active Deficit = $30 Billion
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit Contractionary Fiscal Policy: Active Surplus
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit Lags in Fiscal Policy
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit Total U.S. Public Debt, 1966–2006 Source: Federal Reserve Bank of St. Louis, Economic Data—FRED, (accessed September 17, 2006).
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit U.S. Real Per Capita Government Debt, 1966–2006 Source: Federal Reserve Bank of St. Louis, Economic Data—FRED, (accessed September 17, 2006).
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit Changes in a Government’s Balance Sheet Assets Liabilities + Stockholders’ Equity
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit U.S. Government Debt-to-GDP Ratio, 1966–2006 Source: Federal Reserve Bank of St. Louis, Economic Data—FRED, (accessed September 17, 2006).
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit International Comparison: Government Debt-to-GDP Ratios of Developed Nations for 2006 Source: OECD, Annex Table 32, ‘‘General Government Gross Liabilities: Percent of Nominal GDP,’’ (accessed September 17, 2006).
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit A Nation’s Monetary Base Changes When Our Imaginary Horizontal Line Is Crossed
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit Government Taxes Have No Effect on the Monetary Base
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit Monetary Effects of Government Transfers to the Central Bank
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit Government Deposits at Central Banks as a Percentage of Total Central Bank Liabilities: 2002 Source: Richard W.Kopcke, ‘‘The Practice of Banking in Other Industrialized Countries,’’ New England Economic Review, Second Quarter 2002, p. 7. Also available at neer2002/neer202a.pdf (accessed September 17, 2006).
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit Monetary Effects of Government Spending
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit Effects of Government Borrowing on a Nation’s Potential Money Supply