ECON102: Principles of Macroeconomics

Upon successful completion of this unit, you will be able to:

• explain the effect of government spending, taxation, and budget deficits and surpluses on GDP;
  
• explain how the various kinds of lags influence the effectiveness of discretionary fiscal policy;
  
• explain how discretionary fiscal policy works and influences aggregate demand;
  
• identify the major components of US government spending and their sources;
  
• define the terms budget surplus, budget deficit, and balanced budget; and
  
• explain the difference between a budget deficit and the national debt.