Exam 10: Housing Bubble, Financial Crisis, and Government Spending, Taxes, and Deficits

Andrew purchased 1,000 shares of stock for $25,000 in 1987. In 1997 he sold these 1,000 shares for $72,000. Andrew has experienced

The Great Depression

Government spending that is the result of previously enacted policies and laws such as Social Security and unemployment compensation is called

If federal government revenues (primarily taxes) are greater than total government outlays, then the federal government budget

A government budget deficit occurs when

During expansionary periods in peacetime, we can expect

A "regressive" tax is

The "New Deal" refers to economic policies instituted by

Every year the President and Congress decide on spending for various programs. This type of spending is called

Assume that the federal government collected $2,407 billion in revenues in 2006, and total outlays were $2,655 billion.

A stock market bubble occurs when

Aggregate demand is defined as

During expansionary period in peacetime, we can expect

When was the federal law providing benefits for the unemployed passed?