Between 1998 and 2000, the U.S. government had higher revenue than spending. Which of the following most likely happened because of this? A) The U.S. budget deficit increased B) The U.S. budget deficit decreased C) U.S. national debt decreased D) U.S. national debt increased
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Between 1998 and 2000, the U.S. government had higher revenue than spending. Which of the following most likely happened because of this?
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- Which of the following is a TRUE statement about arguments for and against requiring a balanced federal budget in the U.S.? Group of answer choices One argument against a required balanced federal budget is that sometimes it is necessary or beneficial to run large budget deficits in the short-run. One argument against a required balanced federal budget is that the government does not have macroeconomic responsibilities One argument in support of a required balanced federal budget maintains that having a balanced budget each year would make the impacts of economic recessions less severe. One argument against a required balanced federal budget is that this mandate cannot be added to the Constitution, and therefore, could not be enforced.The amount by which tax revenues exceed government expenditures during a particular year is the: Federal reserve. budget deficit. budget surplus. public debt.Public deficits arise whenever government expenditure exceeds government receipts. This phenomenon may result from various factors, such as an increase in government expenditure, a decrease in taxation, or a decline in receipts due to an economic slowdown. The accumulation of deficit leads to a rise in public debt. This is precisely what happened in many countries in the wake of 2007-2008 financial crises, when a combination of expensive bank bailouts, a decline in tax receipts due to recession, and an increase in government expenditure to fend off recession led to a record high deficit of 7.5 percent of GDP for the entire OECD area in 2010 and a record high public debt-to-GDP ratio of 94 percent in 2014. However, government budget deficits might be quite unsavory to the electorate. Thus, elected governments are sometimes tempted to “cook the books” and use “creative accounting” to present official deficit figures that seriously underestimate the real balance of government budgets.…
- Which of the following is a TRUE statement about arguments for and against requiring a balanced federal budget in the U.S.? One argument against a required balanced federal budget is that this mandate cannot be added to the Constitution, and therefore, could not be enforced. One argument against a required balanced federal budget is that the government does not have macroeconomic responsibilities One argument against a required balanced federal budget is that sometimes it is necessary or beneficial to run large budget deficits in the short-run. One argument in support of a required balanced federal budget maintains that having a balanced budget each year would make the impacts of economic recessions less severe.Since the year 2000, the U.S. government has always been running a budget surplus. A. This statement is true. B. This statement is false. C. The federal budget is mandated by law to be balanced. D. The validity of this statement cannot be determined because the federal budget is top-secret.Refer to the News Wire to answer three questions. NEWS WIRE: FISCAL STIMULUS: TAX CUTS Trump Tax Cuts Boost Spending The Tax Cuts and Jobs Act of 2017 seems to be working. Although the lion's share of President Trump's tax cuts went to business, consumers got a tax break as well. For the average U.S. household, the tax cut amounts to roughly $40 a week in take-home pay. That may not sound like much, but with 130 million households, that extra income can pack some punch. According to the National Retail Federation, consumer spending was up 4.8 percent in the first six months of this year. And the government reports that GDP grew by 4.2 percent in the second quarter, the best performance since 2014. There may be other factors at work here, but tax-cut fueled consumer spending is certainly a big contributor. Source: News accounts of September–October 2018. Instructions: In part a, enter your response as a whole number. In parts b and c, round your responses to one decimal…
- In the context of fiscal policy, what is a budget surplus? A. Government spending exceeds government revenue B. Government revenue exceeds government spending C. Government spending is equal to government revenue D. Government debt is reduced to zeroAn economist who favors smaller government would recommend: tax cuts during recession and reductions in government spending during expansionary periods. tax increases during recession and tax cuts during inflation. tax cuts during recession and tax increases during inflation. increases in government spending during recession and tax increases during inflationFor the last 50 years or so, republicans and democrats at the national level have each favored policies that have led to increased budget deficits, but the policies are different. Republicans have favored tax cuts, while democrats have favored increases in government spending. Perform TWO composition of output analyses, one that examines the impact of a tax cut and one that examines the impact of an increase in government spending. Then, write a sentence or two that describes how the impacts of the two are the same and how they are different
- Which of the following would be classified as fiscal policy? The federal government passes tax cuts to encourage firms to reduce air pollution. The Federal Reserve cuts interest rates to stimulate the economy. A state government cuts taxes to help the economy of the state. The federal government cuts taxes to stimulate the economy. States increase taxes to fund education.Which of the following might increase the government budget deficit? contractionary fiscal policy expansionary fiscal policy expansionary monetary policy contractionary monetary policyMatch the term to the definition: Government spending is less than tax revenue for the fiscal year Government spending is greater than tax revenue for fiscal year A. Budget Deficit B. Budget Surplus
