Exam 33: Budget Deficits in the Short and Long Run

One measure of "ability to pay," the national debt is the debt to

A budget surplus is defined as the amount that the

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

If a budget deficit increases interest rates, it is possible that investment will

What happens typically to a budget deficit during a recession?

Analogies between public and private debt are usually misleading.

Because of the recessions in 1983 and 1991, the structural deficit was far larger than the actual deficit in those years.

The budget deficits of the 1980s and early 1990s differ from others in the post-World War II era in that they were

Until the 1980s, most of the national debt was

If the aggregate supply curve has its normal shape, deficit spending will increase

If the Federal Reserve takes no countervailing actions, an expansionary fiscal policy will increase the deficit, increase GDP, increase prices, and drive up interest rates.

During the late 1980s and early 1990s, most of the budget deficits were accounted for by

In 2009, the U.S.had a budget deficit of approximately

Argentina in 2001 faced a debt problem more serious than the U.S.debt problem because Argentina was obligated to repay its debt in

If the economy suffers a recession for reasons unrelated to fiscal policy, the deficit should rise and

In the late 1990s, the more than expected increases in tax revenues were the result of

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

Although a balanced budget may be appropriate under one monetary policy, a deficit or surplus may be appropriate under a different monetary policy.

The crowding-in effect depends on the fact that often a decrease in taxes causes a(n)

Analysis indicates that the economy is in a recessionary gap.Which of the following is the most appropriate policy mix in this situation?