In 2020, the government collected $3.4 trillion in tax revenue from individuals and businesses. In the same year, the government spent $6.6 trillion on programs that ensure the well-being of the people of the United States*.
In 2021, President Biden has proposed increasing tax rates for the wealthiest Americans and corporations to help partially finance a $6 trillion spending plan to make America focus on infrastructure, education, and the environment. President Biden's spending plan is expected to incur $1.3 trillion per year over the next 10 years.
a) Is the Federal Government conducting expansionary fiscal policy or contractionary fiscal policy? Support your answer with information from above.
b) Based on the information for 2020 above, did the federal government run a budget surplus or a budget deficit? How much was it?
c) How would the fiscal policy actions noted here affect the unemployment rate and the national debt?