Exam 16: Budget Deficits In The Short and Long Run

Why do economists think that the structural deficit is a good measure of the direction of fiscal policy?

What happens typically to a budget deficit during a recession?

If the level of government spending increases at the same time the Fed is pursuing contractionary monetary policy,we know that

How sensitive is the structural deficit to the state of the economy?

Which of the following individuals would be most likely to support a balanced budget amendment to the constitution?

Inflation accounting for the debt argues the following:

If the economy is near full employment and Congress cuts taxes,the proper monetary policy should be

The decisions on the part of the government to increase spending by $5 billion will have the largest impact on aggregate demand when the spending is financed by the sale of bonds to

The national debt is defined as the total

Conventional budget accounting practices tend to overstate deficits in inflationary periods because they

Suppose that the economy is currently at full employment.All other things being equal,if central bank implements contractionary policy,then the appropriate fiscal policy is to

A mathematical formula for the deficit would be

Until 1983,almost all U.S.national debt stemmed from financing wars or from the loss tax revenues that accompany recession.

Monetizing the debt is a way of turning debt into money and reducing the burden of the debt.

A budget deficit will be most inflationary if the aggregate

The Troubled Asset Relief Program (TARP)totaled ____ and the fiscal stimulus package of 2009 totaled ____.

The U.S.national debt at the end of fiscal year 2014 was almost

Since the debt is measured in dollars,the presence of inflation serves to understate the true level of indebtedness.

If the economy is in an inflationary gap,and the government attempts to balance the budget,the effect will be to

The main goal of fiscal policy should always be to