ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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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.
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Transcribed Image Text: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.
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