Exam 16: Budget Deficits in the Short and Long Run

The federal budget deficit in 2009 was more than eight times larger than the deficit in 2007.

When will the difference between the actual deficit and the structural deficit be the largest?

For which of the following time periods did the U.S.have a budget surplus?

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

Why do economists view structural budget deficit as a good measure of the direction of the fiscal policy?

Future generations will be hurt by a high national debt if incurring the debt

The main reason that the deficit grows in a recession is that

A budget surplus exists when

Under a balanced budget policy,a sharp decline in GDP will cause

Until the 1980s,most of the national debt was

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

The argument that budget deficits are inflationary is

What happens typically to a budget deficit during an economic recovery?

Between the years of 2001 and 2003,what happened to the structural deficit?

A budget surplus is defined as the amount that the

If the national debt is owed to foreigners,

In the short run,the dominant effect of deficit reduction causes an

What happens typically to a budget deficit during a recession?

The portion of the national debt owned by foreigners does constitute a burden to the U.S.

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