1. Table 10.1 An Increase in Government Spending[1]
(1)
Income
(Y)
(2)
Consumption
(C)
(3)
Intended Investment
(II)
(4)
Original
Aggregate Demand
(AD = C + II)
(5)
Government Spending
(G)
(6)
New Aggregate Demand
(AD1 = C + II + G)
300
260 60
320 80
400
340
480
500
420
560
600
640
700
580
720
800
660

2. Figure 10.1: Increased Government Spending

3. Federal Sources of Funds, Fiscal 2004
Figure 10.2: U.S. Federal Government Source of Funds and Outlays, 2005 (to be continued)
Federal Sources of Funds, Fiscal 2004
Social security,
Medicare,
unemployment, and
retirement taxes, 32%
Corporate income
taxes, 8%
Borrowing to cover
deficit, 18%
Personal income
taxes, 35%
Excise, customs, gift,
estate, and
miscellaneous taxes, 7%

4. Figure 10.2: U.S. Federal Government Source of Funds and Outlays, 2005
(continued)
Figure 10.2: U.S. Federal Government Source of Funds and Outlays, 2005

5. Figure 10.3: The Government Deficit as a Percentage of GDP
Federal Surplus or Deficit as % GDP -7 -6 -5 -4 -3 -2 -1 1 2 3
1970
1975
1980
1985
1990
1995
2000
2005
2010
Surplus (+)
or Deficit (-)
Figure 10.3: The Government Deficit as a Percentage of GDP

6. Figure 10.4: Government Debt Held by the Public as a Percentage of GDP
U.S. Federal Debt as % GDP
0.00
0.10
0.20
0.30
0.40
0.50
0.60
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Domestically-
held debt
Foreign-held
Debt
Figure 10.4: Government Debt Held by the Public as a Percentage of GDP

7. Figure 10.5 Government outlays, taxes and surplus/deficit as % GDP
Federal Receipts, Outlays, and Surplus/Deficit as % GDP
-10 -5 5 10 15 20 25
1970
1975
1980
1985
1990
1995
2000
2005
2010
Receipts
Outlays
Surplus (+) or
Deficit (-)
Figure Government outlays, taxes and surplus/deficit as % GDP

8. Figure 10.6: Leakages and Injections in a Complete Macroeconomic Model

9. Figure 10.7 A Cut in the Proportional Tax Rate