SlideShare uma empresa Scribd logo
1 de 15
Chapter 3 Economic Challenges Facing Global and  Domestic Business Learning Goals Distinguish between micro-economics and macroeconomics. Explain the factors that drive supply and demand. Describe the four types of market structures in a private enterprise system. Compare the three major types of economic systems. Identify and describe the four stages of the business cycle. Explain the factors that affect the stability of a nation’s economy. Discuss how monetary and fiscal policy are used to manage an economy’s performance. Describe the major global economic challenges of  the 21st century. 1 2 3 4 5 6 7 8
Economics   Analysis of the choices people and governments make in allocating scarce resources. Microeconomics   The study of small economic units, such as individual consumers, families, and businesses. Macroeconomics   The study of a country’s overall economic issues, such as how an economy uses its resources and the effects of government policies on individuals’ standard of living. Microeconomics: The Forces of Demand and Supply Demand  Willingness and ability of consumers to purchase goods and services at different prices. Supply   Amount of goods and services for sale at different prices.
Factors Driving Demand •  Demand curve  shows the amount of a product buyers will purchase at different prices. Quantity increases as price decreases. •  Economists distinguish between changes in the quantity demanded at various prices and a true shift in the demand curve.
Factors Driving Supply •  A  supply curve  shows the relationship between different prices and the quantities that sellers will offer for sale, regardless of demand. •  Movement along the supply curve is the opposite of movement along the demand curve. •  The factors of production play a central role in determining the overall supply of goods and services.
How Demand and Supply Interact •  Changes in the real world often affect both supply and demand, and often multiple factors cause contradictory pressures. •  Supply and demand curves meet at the  equilibrium price . •  Buyers and sellers tend to make choices that restore the equilibrium price.
MACROECONOMICS: ISSUES FOR THE ENTIRE SOCIETY •  Political, social, and legal environments differ in every country. •  Three types of economies •  Private enterprise systems •  Planned economies •  Mixed market systems
 
EVALUATING ECONOMIC PERFORMANCE •  Economic system should provide stable business environment and sustained growth. Flattening the Business Cycle •  Business decisions and consumer behavior differ at various stages of the business cycle: •  Prosperity—High consumer confidence, businesses expanding •  Recession—Cyclical economic contraction lasting for six months or longer •  Depression—Extended recession •  Recovery—Declining unemployment, increasing business activity
Productivity and the Nation’s Gross Domestic Product Productivity   Relationships between the goods and services produced and the inputs needed to produce them. Gross Domestic Product (GDP)   Sum of all goods and services produced within a nation’s boundaries; a measure of national productivity. •  GDP is tracked in the United States by the  Bureau of   Economic Analysis , a  division of the U.S. Department of Commerce.
Price-Level Changes Inflation   Rising prices caused by a combination of excessive consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production. •  Devalues money: Hurts people with fixed or slowly rising incomes, income from fixed interest rate; benefits people with rising incomes, debts with fixed interest rate •  Steady prices benefit the overall economy •  Businesses can make long-range plans and investments •  Consumers can purchase more products, particularly major purchases. •  Deflation  Falling prices, which can weaken the overall economy. Measuring Price Level Changes  The U.S. government tracks price  changes through the  Consumer Price Index , which measures the  monthly average change in prices of goods and services.
Employment Levels •  The  unemployment rate  is the percentage of total workforce actively seeking work but currently unemployed.
MANAGING THE ECONOMY’S PERFORMANCE •  Government uses monetary and fiscal policy to fight unemployment, increase spending, and reduce the duration and severity of economic recession. Monetary Policy Monetary Policy   Government actions to increase or decrease the money supply and change banking policy and interest rates to influence consumer spending. Fiscal Policy Fiscal Policy   Government actions to influence economic activity through decisions about taxes and spending.
The Federal Budget   Budget   Annual plan for how the government will raise and spend money in the coming year. •  Primary sources of government funds: Taxes, borrowing, and fees. •  Government spending in excess of tax revenue produces a  budget deficit . •  Government covers the deficit by borrowing money by selling  Treasury bills, notes, and bonds to investors. •  These obligations are added to the  national debt , $43 trillion at the  writing of this text. •  Government revenue in excess of spending results in a  budget surplus . •  Equal spending and revenue results in a  balanced budget . •  How fast to pay off the national debt is the subject of national debate.
GLOBAL ECONOMIC CHALLENGES OF THE 21ST CENTURY
GLOBAL ECONOMIC CHALLENGES OF THE 21ST CENTURY

Mais conteúdo relacionado

Mais procurados

AS Macro Revision: Inflation and Deflation
AS Macro Revision: Inflation and DeflationAS Macro Revision: Inflation and Deflation
AS Macro Revision: Inflation and Deflation
tutor2u
 
ECONOMICS Chapter 3
ECONOMICS Chapter   3ECONOMICS Chapter   3
ECONOMICS Chapter 3
saransuriyan
 
Economic environment
Economic environmentEconomic environment
Economic environment
AyUsh GupTa
 
Macroeconomics Policies
Macroeconomics PoliciesMacroeconomics Policies
Macroeconomics Policies
crrcaz
 
Conflicts between Macro-Objectives
Conflicts between Macro-ObjectivesConflicts between Macro-Objectives
Conflicts between Macro-Objectives
mattbentley34
 
Macro-Economic Policy
Macro-Economic PolicyMacro-Economic Policy
Macro-Economic Policy
mattbentley34
 
AS Macro Revision: Fiscal Policy
AS Macro Revision: Fiscal PolicyAS Macro Revision: Fiscal Policy
AS Macro Revision: Fiscal Policy
tutor2u
 

Mais procurados (20)

AS Macro Economics: Economic Cycle and Objectives
AS Macro Economics: Economic Cycle and ObjectivesAS Macro Economics: Economic Cycle and Objectives
AS Macro Economics: Economic Cycle and Objectives
 
AS Macro Revision: Inflation and Deflation
AS Macro Revision: Inflation and DeflationAS Macro Revision: Inflation and Deflation
AS Macro Revision: Inflation and Deflation
 
Employment unemployment
Employment unemploymentEmployment unemployment
Employment unemployment
 
AS Macroeconomics - Aspects of UK Fiscal Policy
AS Macroeconomics - Aspects of UK Fiscal PolicyAS Macroeconomics - Aspects of UK Fiscal Policy
AS Macroeconomics - Aspects of UK Fiscal Policy
 
Inflation
InflationInflation
Inflation
 
Demand side policies
Demand side policiesDemand side policies
Demand side policies
 
Unit 1 Micro: Positive Externalities
Unit 1 Micro: Positive ExternalitiesUnit 1 Micro: Positive Externalities
Unit 1 Micro: Positive Externalities
 
Macro objectives
Macro objectivesMacro objectives
Macro objectives
 
ECONOMICS Chapter 3
ECONOMICS Chapter   3ECONOMICS Chapter   3
ECONOMICS Chapter 3
 
Economic environment
Economic environmentEconomic environment
Economic environment
 
Macroeconomics Policies
Macroeconomics PoliciesMacroeconomics Policies
Macroeconomics Policies
 
Conflicts between Macro-Objectives
Conflicts between Macro-ObjectivesConflicts between Macro-Objectives
Conflicts between Macro-Objectives
 
AS Macro: Managing the Economy
AS Macro: Managing the EconomyAS Macro: Managing the Economy
AS Macro: Managing the Economy
 
AS Macro: The Effectiveness of UK Macro-Economic Policies
AS Macro: The Effectiveness of UK Macro-Economic PoliciesAS Macro: The Effectiveness of UK Macro-Economic Policies
AS Macro: The Effectiveness of UK Macro-Economic Policies
 
AS Macro Question - Falling Unemployment
AS Macro Question - Falling UnemploymentAS Macro Question - Falling Unemployment
AS Macro Question - Falling Unemployment
 
Macro-Economic Policy
Macro-Economic PolicyMacro-Economic Policy
Macro-Economic Policy
 
AS Macro Revision: Fiscal Policy
AS Macro Revision: Fiscal PolicyAS Macro Revision: Fiscal Policy
AS Macro Revision: Fiscal Policy
 
Year 1 Macro: Supply-Side Policies
Year 1 Macro: Supply-Side PoliciesYear 1 Macro: Supply-Side Policies
Year 1 Macro: Supply-Side Policies
 
AS Macro Supply Side Competitiveness
AS Macro Supply Side CompetitivenessAS Macro Supply Side Competitiveness
AS Macro Supply Side Competitiveness
 
AS econ session 4
AS econ session 4AS econ session 4
AS econ session 4
 

Destaque (6)

Juego comunidades
Juego comunidadesJuego comunidades
Juego comunidades
 
Example media
Example mediaExample media
Example media
 
Monica tataru
Monica tataruMonica tataru
Monica tataru
 
NRENs in the Dissemination of Innovative Low Cost Global Solutions: From Univ...
NRENs in the Dissemination of Innovative Low Cost Global Solutions: From Univ...NRENs in the Dissemination of Innovative Low Cost Global Solutions: From Univ...
NRENs in the Dissemination of Innovative Low Cost Global Solutions: From Univ...
 
Simultaneous pollinator occurence (hymenoptera, agaoninae) in a threatened sp...
Simultaneous pollinator occurence (hymenoptera, agaoninae) in a threatened sp...Simultaneous pollinator occurence (hymenoptera, agaoninae) in a threatened sp...
Simultaneous pollinator occurence (hymenoptera, agaoninae) in a threatened sp...
 
Nicki minaj
Nicki minajNicki minaj
Nicki minaj
 

Semelhante a Chapter 3 Presentation

Boone 15e student_ppt_ch03
Boone 15e student_ppt_ch03Boone 15e student_ppt_ch03
Boone 15e student_ppt_ch03
dmeyeravc
 
Bba 2 be ii u 1.1 introduction to macro economics
Bba 2 be ii u 1.1 introduction to macro economicsBba 2 be ii u 1.1 introduction to macro economics
Bba 2 be ii u 1.1 introduction to macro economics
Prof. Devrshi Upadhayay
 
Bba 2 be ii u 1.1 introduction to macro economics
Bba 2 be ii u 1.1 introduction to macro economicsBba 2 be ii u 1.1 introduction to macro economics
Bba 2 be ii u 1.1 introduction to macro economics
Rai University
 

Semelhante a Chapter 3 Presentation (20)

The Most Challenging economy in Decades
The Most Challenging economy in Decades The Most Challenging economy in Decades
The Most Challenging economy in Decades
 
The Most Challenging Economy in Decades
The Most Challenging Economy in DecadesThe Most Challenging Economy in Decades
The Most Challenging Economy in Decades
 
Boone 15e student_ppt_ch03
Boone 15e student_ppt_ch03Boone 15e student_ppt_ch03
Boone 15e student_ppt_ch03
 
ch03.ppt
ch03.pptch03.ppt
ch03.ppt
 
Bsc agri 2 pae u-3.2 introduction to macro economics
Bsc agri  2 pae  u-3.2 introduction to macro economicsBsc agri  2 pae  u-3.2 introduction to macro economics
Bsc agri 2 pae u-3.2 introduction to macro economics
 
Unit -4 (1).pptx
Unit -4 (1).pptxUnit -4 (1).pptx
Unit -4 (1).pptx
 
Chapter 1.ppt
Chapter 1.pptChapter 1.ppt
Chapter 1.ppt
 
Chapter 1 (2).ppt
Chapter 1 (2).pptChapter 1 (2).ppt
Chapter 1 (2).ppt
 
Macro vs Microeconomics
Macro vs MicroeconomicsMacro vs Microeconomics
Macro vs Microeconomics
 
CHAPTER 3-ECONOMIC ENVIRONMENT.ppt
CHAPTER 3-ECONOMIC ENVIRONMENT.pptCHAPTER 3-ECONOMIC ENVIRONMENT.ppt
CHAPTER 3-ECONOMIC ENVIRONMENT.ppt
 
Macroeconomics
MacroeconomicsMacroeconomics
Macroeconomics
 
macroeconomics- 1.pptx
macroeconomics- 1.pptxmacroeconomics- 1.pptx
macroeconomics- 1.pptx
 
Bba 2 be ii u 1.1 introduction to macro economics
Bba 2 be ii u 1.1 introduction to macro economicsBba 2 be ii u 1.1 introduction to macro economics
Bba 2 be ii u 1.1 introduction to macro economics
 
introduction to macro economics
introduction to macro economicsintroduction to macro economics
introduction to macro economics
 
Bba 2 be ii u 1.1 introduction to macro economics
Bba 2 be ii u 1.1 introduction to macro economicsBba 2 be ii u 1.1 introduction to macro economics
Bba 2 be ii u 1.1 introduction to macro economics
 
Economic environment ppt
Economic environment ppt Economic environment ppt
Economic environment ppt
 
Macro economics
Macro economicsMacro economics
Macro economics
 
chapter9.pptx
chapter9.pptxchapter9.pptx
chapter9.pptx
 
1) overview of macroeconomics
1) overview of macroeconomics1) overview of macroeconomics
1) overview of macroeconomics
 
Economic systems
Economic systemsEconomic systems
Economic systems
 

Último

unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabiunwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
Abortion pills in Kuwait Cytotec pills in Kuwait
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
daisycvs
 
Jual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan Cytotec
Jual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan CytotecJual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan Cytotec
Jual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan Cytotec
ZurliaSoop
 
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
daisycvs
 
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in OmanMifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
instagramfab782445
 

Último (20)

unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabiunwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
 
Lucknow Housewife Escorts by Sexy Bhabhi Service 8250092165
Lucknow Housewife Escorts  by Sexy Bhabhi Service 8250092165Lucknow Housewife Escorts  by Sexy Bhabhi Service 8250092165
Lucknow Housewife Escorts by Sexy Bhabhi Service 8250092165
 
Falcon Invoice Discounting: Tailored Financial Wings
Falcon Invoice Discounting: Tailored Financial WingsFalcon Invoice Discounting: Tailored Financial Wings
Falcon Invoice Discounting: Tailored Financial Wings
 
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdfDr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
 
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All TimeCall 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
 
Power point presentation on enterprise performance management
Power point presentation on enterprise performance managementPower point presentation on enterprise performance management
Power point presentation on enterprise performance management
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
 
New 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck TemplateNew 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck Template
 
Jual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan Cytotec
Jual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan CytotecJual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan Cytotec
Jual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan Cytotec
 
joint cost.pptx COST ACCOUNTING Sixteenth Edition ...
joint cost.pptx  COST ACCOUNTING  Sixteenth Edition                          ...joint cost.pptx  COST ACCOUNTING  Sixteenth Edition                          ...
joint cost.pptx COST ACCOUNTING Sixteenth Edition ...
 
CROSS CULTURAL NEGOTIATION BY PANMISEM NS
CROSS CULTURAL NEGOTIATION BY PANMISEM NSCROSS CULTURAL NEGOTIATION BY PANMISEM NS
CROSS CULTURAL NEGOTIATION BY PANMISEM NS
 
Uneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration PresentationUneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration Presentation
 
Falcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business PotentialFalcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business Potential
 
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
 
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdfTVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with Culture
 
Falcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investorsFalcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investors
 
Cracking the 'Career Pathing' Slideshare
Cracking the 'Career Pathing' SlideshareCracking the 'Career Pathing' Slideshare
Cracking the 'Career Pathing' Slideshare
 
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in OmanMifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
 
Phases of Negotiation .pptx
 Phases of Negotiation .pptx Phases of Negotiation .pptx
Phases of Negotiation .pptx
 

Chapter 3 Presentation

  • 1. Chapter 3 Economic Challenges Facing Global and Domestic Business Learning Goals Distinguish between micro-economics and macroeconomics. Explain the factors that drive supply and demand. Describe the four types of market structures in a private enterprise system. Compare the three major types of economic systems. Identify and describe the four stages of the business cycle. Explain the factors that affect the stability of a nation’s economy. Discuss how monetary and fiscal policy are used to manage an economy’s performance. Describe the major global economic challenges of the 21st century. 1 2 3 4 5 6 7 8
  • 2. Economics Analysis of the choices people and governments make in allocating scarce resources. Microeconomics The study of small economic units, such as individual consumers, families, and businesses. Macroeconomics The study of a country’s overall economic issues, such as how an economy uses its resources and the effects of government policies on individuals’ standard of living. Microeconomics: The Forces of Demand and Supply Demand Willingness and ability of consumers to purchase goods and services at different prices. Supply Amount of goods and services for sale at different prices.
  • 3. Factors Driving Demand •  Demand curve shows the amount of a product buyers will purchase at different prices. Quantity increases as price decreases. • Economists distinguish between changes in the quantity demanded at various prices and a true shift in the demand curve.
  • 4. Factors Driving Supply • A supply curve shows the relationship between different prices and the quantities that sellers will offer for sale, regardless of demand. • Movement along the supply curve is the opposite of movement along the demand curve. • The factors of production play a central role in determining the overall supply of goods and services.
  • 5. How Demand and Supply Interact •  Changes in the real world often affect both supply and demand, and often multiple factors cause contradictory pressures. •  Supply and demand curves meet at the equilibrium price . • Buyers and sellers tend to make choices that restore the equilibrium price.
  • 6. MACROECONOMICS: ISSUES FOR THE ENTIRE SOCIETY •  Political, social, and legal environments differ in every country. •  Three types of economies • Private enterprise systems • Planned economies •  Mixed market systems
  • 7.  
  • 8. EVALUATING ECONOMIC PERFORMANCE •  Economic system should provide stable business environment and sustained growth. Flattening the Business Cycle •  Business decisions and consumer behavior differ at various stages of the business cycle: •  Prosperity—High consumer confidence, businesses expanding •  Recession—Cyclical economic contraction lasting for six months or longer •  Depression—Extended recession •  Recovery—Declining unemployment, increasing business activity
  • 9. Productivity and the Nation’s Gross Domestic Product Productivity Relationships between the goods and services produced and the inputs needed to produce them. Gross Domestic Product (GDP) Sum of all goods and services produced within a nation’s boundaries; a measure of national productivity. •  GDP is tracked in the United States by the Bureau of Economic Analysis , a division of the U.S. Department of Commerce.
  • 10. Price-Level Changes Inflation Rising prices caused by a combination of excessive consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production. •  Devalues money: Hurts people with fixed or slowly rising incomes, income from fixed interest rate; benefits people with rising incomes, debts with fixed interest rate •  Steady prices benefit the overall economy •  Businesses can make long-range plans and investments •  Consumers can purchase more products, particularly major purchases. •  Deflation Falling prices, which can weaken the overall economy. Measuring Price Level Changes The U.S. government tracks price changes through the Consumer Price Index , which measures the monthly average change in prices of goods and services.
  • 11. Employment Levels •  The unemployment rate is the percentage of total workforce actively seeking work but currently unemployed.
  • 12. MANAGING THE ECONOMY’S PERFORMANCE •  Government uses monetary and fiscal policy to fight unemployment, increase spending, and reduce the duration and severity of economic recession. Monetary Policy Monetary Policy Government actions to increase or decrease the money supply and change banking policy and interest rates to influence consumer spending. Fiscal Policy Fiscal Policy Government actions to influence economic activity through decisions about taxes and spending.
  • 13. The Federal Budget Budget Annual plan for how the government will raise and spend money in the coming year. •  Primary sources of government funds: Taxes, borrowing, and fees. •  Government spending in excess of tax revenue produces a budget deficit . •  Government covers the deficit by borrowing money by selling Treasury bills, notes, and bonds to investors. •  These obligations are added to the national debt , $43 trillion at the writing of this text. •  Government revenue in excess of spending results in a budget surplus . •  Equal spending and revenue results in a balanced budget . • How fast to pay off the national debt is the subject of national debate.
  • 14. GLOBAL ECONOMIC CHALLENGES OF THE 21ST CENTURY
  • 15. GLOBAL ECONOMIC CHALLENGES OF THE 21ST CENTURY