Eco 372 Fiscal Policy Team Paper

Fiscal Policy Paper

According to Colander (2010), a "deficit is a shortfall of revenues under payments and a surplus is an excess of revenues over payments" (p. 406). A debt is normally money that is owed or due and in the United States for Fiscal Year 2013 the budget deficit was projected at 901 billion, however, debt was more than 16 trillion at the end of 2012 (, 2012). The state of the economy is what dictates the view of what is provided by economist in terms of potential output of goods. To stimulate the economy whenever possible it is best to run surpluses or at the very least balance a budget.

Unemployed individual

During a surplus, deficit or debt an unemployed individual is greatly affected and has a profound effect on unemployed...