Exam 16: Budget Deficits in the Short and Long Run

The structural deficit can be used to estimate the thrust of current fiscal policy.

Crowding out can best be defined as:

If the government ran a major deficit,and there was no noticeable effect on the level of GDP,this could be taken as evidence of

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

As GDP falls,automatic stabilizers run the federal budget in a deficit direction.

The American national debt,like the Greek debt in 2010,is an obligation to pay primarily in foreign currencies.

The main goal of fiscal policy should always be to

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

If the national debt is owed entirely to U.S.citizens,

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

Figure 16-1 -In Figure 16-1,there are four levels of income.G is government expenditures and TT is taxes less transfers.At which level of income is the actual deficit the greatest?

In 2010,the debt-to-GDP ratio increased to roughly the same ratio as the 1990s.

Monetizing the debt has what effect on the economy?

A budget deficit will be least inflationary if the aggregate

The "crowding out" effect states that government spending pushes up interest rates and reduces private investment spending.

Which of the following is not t with regard to the burden of the U.S.national debt?

If the President and Congress agree to balance the budget during a recession,then the appropriate monetary policy is

Proponents of deficit reduction argue that the principal effect will be an

List three bogus arguments about the "burden of the debt," and point out the errors in each of the arguments.

At the end of 2010,the net national debt per person in the United States was approximately