Iscal Policy: Government spending, taxes, budget processes,

Macroeconomic choices, particularly in the areas of fiscal policy, are not just about economics but about deeply held assumptions and values as well. This Case asks you to think about some of these dimensions in relation to a matter that was of pressing concern.

The Congressional Budget Office (C BO) prepares reports for congress. It is a non-partisan office.

For this Case, please read The Budget Outlooksection of the CBOs The Budget and Economic Outlook: Fiscal Years 2009 to 2019, dated January 2009, at

01-07-Outlook.pdf

The specific information you need for this case is on page 16 in Table 5. However, there is a great deal of interesting information in this document and I encourage you to look through it and see what it contains.

Prepare a 4 to 5-page paper addressing the following questions:

1. What are the three major categories of revenues for the federal government?

2. What are the three major categories of expenditures for the federal government?

I would like to see more detail on revenues and expenditures than what is given in the above referenced table.

3. Explain whether or not we should be concerned with net interest outlays and national debt.

4. What major concerns are there about the federal budget in the long run?

5. How would you recommend those concerns be dealt with?

Ensure that you repeat the case question (shown in bold above) verbatim on the title page of your paper.

Case assignment expectations:

Use information from the modular background readings as well as any good quality resource you can find. Make sure you cite all resources you use and provide a reference list at the end of your paper.

LENGTH: 4-5 typed and double-spaced pages.

In addition to the overall quality, depth, grammar, and organization of the paper, the following will, in particular, be assessed:

1. Analytical skills that allow you to draw conclusions, questions 3 and 4, on federal budget projections.

2. Critical thinking skills, question 5, on formulating policy about budgetary matters.