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.

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.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 12SCQ: In a recession, does the actual budget surplus or deficit fall above or below the standardized...

See similar textbooks

Related questions

Q: A manager's operation currently has an average sale per guest of $9.00. For the upcoming accounting…

A: A revenue forecast is an knowledgeable prediction or estimation for the approaching yr approximately…

Q: When defining the hypothesis, we present… a. None of the responses b. The null…

A: A hypothesis is a formal statement that explains the relationship between two or more variables in a…

Q: The United States has an absolute advantage in the production of many things. Why is it sometimes…

A: Trade refers to the exchange of goods and services between the two nations. Economist argues that…

Q: uppose GDP in this country is $1,365 million. Enter the amount for consumption. Nationa ncome…

A: Gross domestic product (GDP) is the standard measure of the value added created through the…

Q: An income tax put on a person's income raises the same amount of revenue as a quantity tax put on…

A: People are exposed to a consumption tax when they spend money, similar to how much they buy. When…

Q: In production of goods, what is the difference between Short Run period and Long Run period? Why it…

A: The short-run and long-run are macroeconomic concepts that arise due to the time horizon associated…

Q: Which of the following statements is true? OA. When a large proportion of income is spent on a…

Q: 11. Shinhan Bank has 100 in checkable deposits, total reserves of 15, a loan of 85, and no bank…

A: Balance sheet before 10 $ outflow Required reserves = 10 % of deposits = 10 $ Excess reserves =…

Q: the production possibility curve for an economy is a. concave to the origin b. convex to the…

Q: Which of the following goods is NOT scarce? Opublic libraries Ogarbage clean air in a big city…

A: Economic decisions are those decisions in which people will choose what to do with limited…

Q: For the following problem, what would be the objective function that aims at minimizing the total…

A: Given,

Q: Necessities with no close substitutes: Are likely to have highly elastic demand curves. Are likely…

A: Necessities are the items that are purchased by the people on daily basis. These are the items which…

Q: What are the applications of partial derivatives in economics?

A: The derivative of a function of a single variable that depicts quickness of change in function value…

Q: In an economy with 200 million people, 140 million hold civilian jobs and 9 million are not working…

A: Unemployment is a time period relating to individuals who are employable and actively searching for…

Q: Consider the following Malthusian Model. Suppose that output in the economy is described by Y =…

A: In a Malthusian model, a technological change is only supposed to increase the level of population.…

Q: If we examine the effects of an iPhone price change on the quantity sold "holding everything else…

A: In economics when an economists wants to determine the relationship between two factors, he requires…

Q: What calculation gives the best indication of economic well-being? nominal GDP divided by the number…

A: Standard of living means the average quantity or quality of goods and services that people in a…

Q: 6. Which of the following demonstrates the law of supply? a. When leather became more expensive,…

A: Law of supply states the positive relationship between supply and price. If price falls, then supply…

Q: If at the current level of advertising the firm estimates that its advertising elasticity is e ( A )…

A: The advertising elasticity is the responsiveness of demand with the change in advertising…

Q: The price elasticity of demand is given by E= = where P and Q denote price and 20² quantity…

A: Demand function: P = a-bQ

Q: 1. Assume that there is economy with increasing of government expenditure and interest rate and…

A: Introduction

Q: According to the efficient market theory, prices of actively traded stocks can be under- or…

A: Stocks are the financial instruments that firms or organizations raise and sell to the investors in…

Q: Quantity of hours Refer to the figure above. If the government imposes a minimum wage in this…

A: The minimum wage is determined by the government. the firms can not give wage rate below the minimum…

Q: Costs 0 MC D ATC

A: The firm will shut down it's operations and exit the market at a point for a competitive firm is…

Q: The recession of 2007-2009 caused General Motors' sales to decline by A. 65 percent; 50 percent…

A: When talking abou financial sales of General motors between 2007 to 2015, it can be said that it was…

Q: Suppose auto workers as part of a new union agreement negotiate higher hourly wages, what impact…

A: Here, it is given that hourly wage of author workers has increased due to a new union agreement.

Q: hich of the following is the correct calculation of project Delta's IRR? 3.18% 3.37% 3.55% 3.74% If…

A: The internal rate of return (IRR) is a metric used in financial analysis to estimate the…

Q: Explain why in case of a fixed exchange rate regime temporary and permanent fiscal policy changes do…

A: A fixed exchange rate, habitually called a fixed exchange rate, is a sort of exchange rate framework…

Q: Explain the different types of market structure ( bullet points)

A: Market refers to the system through which the buyers and sellers interact with each others. The…

Q: From the information below calculate aggregate demand; Consumption (C) = $200 + 0.6Y Investment…

A: Aggregate demand means an economic measure of the whole of all definitive services and goods…

Q: Suppose Jessica has two choices: receive $12000 and 30 utils or take a gamble that has a 55% chance…

A: Jessica has two options one is risk less and one has risk.

Q: If you make $83200 in Alaska, how much would you need to make in Arkansas to keep the same standard…

A: Real income which means how many goods can be bought with given level of income . If we want to…

Q: What are the seven virtues which Deirdre McCloskey claims as Bourgeois Virtues? O Courage,…

A: The answer is - Option 1. Courage, temperance, justice, prudence, faith, hope and love.

Q: The following table shows nominal GDP and an appropriate price index for a group of selected years.…

A: Nominal GDP, unlike real GDP, does not correctly reflect an economy's output. The total national…

Q: e. Hamza, who services 20% of the breakdowns, makes an incomplete repair 1 time in 20; ousof, who…

A: Conditional Probability The conditional probability implies the likelihood of two or more events…

Q: Increased employment Increased competition Economic expansion Previous Activity Increased economic…

A: In a market, entrepreneur plays a significant role in the overall growth and development of the…

Q: Which of the following policies would lead to increased productivity in the fishing industry? Check…

A: Productivity refers to the economic measurement of the ability of the input resource to generate…

Q: Two firms produce and sell differentiated products that are substitutes for each other. Their demand…

A: Given the information: Firm 1: Q1=40-3P1+P2Firm 2: Q2=40-3P2+P1MC = $2.30

Q: Q2/suppose there were six kinds of toppings that one could order for a pizza. How many combinations…

A: If the toppings must be varied and the order in which they are placed is critical, the number of…

Q: If the price of sodium-sulfur batteries decreases, the price of lithium batteries will

A: Given: The price of sodium sulfur batteries decrease.

Q: d. Suppose that Government bureaucrats had been operating under wrong assumptions: in reality, the…

A: Externalities An externality is a cost or benefit incurred or received by a provider that is not…

Q: Why does agricultural output tend to increase along with population, in contrast to Malthus's…

A: Thomas Robert Malthus was a prominent figure in the disciplines of political economics and…

Q: a.) The money supply is $6000 000, currency held by the public is $2 000 000, and the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A company that manufactures magnetic flow meters expects to undertake a project that will have the…

A: Given FC= $ -840,000 Equipment replacement cost in year 2 = -$300,000 Annual operating cost…

Q: Finance When a yield curve has a positive slope: Select one: a. long-term yields are higher than…

A: A yield curve is a line that plots yields (interest rates) of bonds having equal credit quality but…

Q: Solve as soon as possible... Suppose a 4 percent increase in income results in a 2 percent…

A: In economics, different types of goods tends to change differently when the consumer incomes…

Q: 4. Profit maximization and loss minimization BYOB is a monopolist in beer production and…

A: Economic profit (or loss) alludes to the distinction between absolute incomes, fewer expenses, and…

Q: Under what circumstances does a firm operate with excess capacity? Question 22 options: when…

A: In a market, excess capacity of a firm refers to the situation when the demand for a specific…

Q: A car rental agency is considering a modification in its oil change procedure. Currently, it uses a…

A: Following is the given values: Cost of type X filter = $4.75Filter changed every = 9000 miles Number…

Q: Which of the following is NOT an aspect of income inherent in the economic life cycle? Question 35…

A: The measure that depicts the fluctuations that occur in the economy between periods of expansion and…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The government runs a budget surplus when ? A.tax revenue falls below its spending. B.the budget is balanced. C.tax revenue exceeds its spending. D. investment exceeds its spending.
The federal budget usually shows a surplus. True or False?
V3 After many years of budget surpluses, why did the government drastically increase spending in 2009?
discuss the budget cycle.discuss why the annual budget is considered as a political act of state?
The budget function for the economy of Sunsville is T - G = -400 + 0.25Y.a) Suppose income is $4,000. What is the value of the budget surplus or deficit?b) What range of income will give Sunsville a budget surplus?c) What range of income will give Sunsville a budget deficit?d) At what level of income will there be a balanced budget?
Explain the importance of government budget in an economy??
When the economy is in recession, government revenue falls due to a falling tax base. Therefore the proper role of government should be to increase taxes and cut spending so as to balance the Federal budget. Do you agree? Why?
During the 1990s, the federal budget moved from a deficit to a surplus. What factors accounted for this change? Were the budget surpluses of the late 1990s good for the economy? Would it have been better to have reduced taxes and balanced the budget during 1999-2000? Why or why not?
Which one of the following statements regarding fiscal policy and the budget is (2) correct?(a) When the government plans to stimulate economic activity, it can increasespending or reduce taxes;
Which of the following statements about state budget is wrong? a. Budget may be annual or biennial b. About half of the states have dual budget system - operating budget and capital budget c. Most operate under the balanced budget requirement d. All governors have item veto power
How will the revenues for the bottom line with a budget of $3.4 trillion affect our economy?
How will the deficit for the bottom line budget of $3.1 trillion affect the economy?