Blessed are the young, for they shall inherit the national debt Herbert hoover When a government spends more than it collects in taxes, it borrows from the private sector to finance the budget deficit. The accumulation of past borrowin is the government debt. Debate about the appropriate amount of government debt in the United States is as old as the country itself. Alexander Hamilton be- lieved thata national debt, if it is not excessive, will be to us a national blessing, whereas James Madison argued that \a public debt is a public curse \Indeed, the location of the nations capital was chosen as part of a deal in which the federal
1. Given the government expenditure, whether the government budget is in surp lus or deficit dep ends on the tax revenue which itself depends on rate of tax. Please derive the tax rate at which the government budget is in balance. Draw the graph that reflects the relation between tax rate and deficit (or surplus)
I guess I have to come out to reply to those who concern with the nature rate of unemployment First, What is the natural rate of unemployment? It is assumed to be the unemployment rate at the steady state or equilibrium. Note that equilibrium here is not referred to the common
I guess I have to come out to reply to those who concern with the nature rate of unemployment First, What is the natural rate of unemployment? It is assumed to be the unemployment rate at the steady state or equilibrium. Note that equilibrium here is not referred to the common
