Tax is not the only way to finance the government expenditures. Government borrowing has been a major mechanism to sustain the large outlays in the recent decades. In the 2009 financial crisis, the Obama administration has implemented a large stimulus. Retrospectively, however, it was likely to be too small to bring the U.S. economy back to the trajectory. In contrast, the spending during the 2020-21 pandemic has been significantly larger (both under Trump and Biden administrations). Using the budget projection in the CBO's report, contrast the magnitude of the budget deficit in 2009 and 2020, and 2021 and describe your findings.

Tax is not the only way to finance the government expenditures. Government borrowing has been a major mechanism to sustain the large outlays in the recent decades. In the 2009 financial crisis, the Obama administration has implemented a large stimulus. Retrospectively, however, it was likely to be too small to bring the U.S. economy back to the trajectory. In contrast, the spending during the 2020-21 pandemic has been significantly larger (both under Trump and Biden administrations). Using the budget projection in the CBO's report, contrast the magnitude of the budget deficit in 2009 and 2020, and 2021 and describe your findings.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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