Question 1

Which of the following represents the government's budget constraint?

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 2

Which country has the highest share of medical expenses to GDP?

Accepted Answer

A) Japan 
B) Germany 
C) the United States 
D) France 
E) the United Kingdom 
A) Japan 
B) Germany 
C) the United States 
D) France 
E) the United Kingdom

Question 3

Which of the following are possible explanations for rising health care expenditures?

Accepted Answer

A) the rising cost of health insurance 
B) the aging of the population 
C) anecdotes associated with doctors who induce patients to spend more on medical care than they really would prefer 
D) the use of new and expensive medical technology 
E) all of the above 
A) the rising cost of health insurance 
B) the aging of the population 
C) anecdotes associated with doctors who induce patients to spend more on medical care than they really would prefer 
D) the use of new and expensive medical technology 
E) all of the above

Question 4

-Consider Figure 17.2,which shows the federal government receipts and outlays for the period 1934-2006,as percent of GDP.Which of the following were periods when the federal government ran a budget surplus?

Accepted Answer

A) 1947-1949 
B) 1998-2002 
C) 1955-1958 
D) all of the above 
E) none of the above 
A) 1947-1949 
B) 1998-2002 
C) 1955-1958 
D) all of the above 
E) none of the above

Question 5

Which of the following countries has defaulted on its debt?

Accepted Answer

A) France 
B) Argentina 
C) the United Kingdom 
D) Belgium 
E) China 
A) France 
B) Argentina 
C) the United Kingdom 
D) Belgium 
E) China

Question 6

Which of the following countries has negative government debt?

Accepted Answer

A) Mexico 
B) the United States 
C) South Korea 
D) Russia 
E) Germany 
A) Mexico 
B) the United States 
C) South Korea 
D) Russia 
E) Germany

Question 7

The current U.S.debt held by the public to GDP ratio is about:

Accepted Answer

A) 100 percent. 
B) 67 percent. 
C) 37 percent. 
D) 50 percent. 
E) none of the above 
A) 100 percent. 
B) 67 percent. 
C) 37 percent. 
D) 50 percent. 
E) none of the above

Question 8

If __________ hold(s),then holding the present value of government spending constant,budget deficits will not crowd out investment.

Accepted Answer

A) adaptive expectations 
B) generational accounting 
C) crowding in 
D) lower interest rates 
E) None of the above is correct. 
A) adaptive expectations 
B) generational accounting 
C) crowding in 
D) lower interest rates 
E) None of the above is correct.

Question 9

The ratio of all levels of government spending-to-GDP in the United States is under 40 percent.

Accepted Answer

A) True 
 B)False

Question 10

If the government increases its budget deficit,__________ is ameliorated if the economy has access to __________.

Accepted Answer

A) crowding out;foreign savings 
B) crowding out;a money printing press 
C) inflation;household savings 
D) unemployment;the tax structure 
E) lower interest rates;foreign savings 
A) crowding out;foreign savings 
B) crowding out;a money printing press 
C) inflation;household savings 
D) unemployment;the tax structure 
E) lower interest rates;foreign savings

Question 11

According to a Congressional Budget Office report,"A 125-Year Picture of the Federal Government's Share of the Economy,1950 to 2075," government revenues are projected to __________ by the year __________,assuming current federal government spending patterns.

Accepted Answer

A) stabilize;2075 
B) stabilize;2020 
C) begin growing faster;2020 
D) begin growing slower;2010 
E) be zero;2075 
A) stabilize;2075 
B) stabilize;2020 
C) begin growing faster;2020 
D) begin growing slower;2010 
E) be zero;2075

Question 12

If domestic saving is less than domestic investment,then investment can be financed by:

Accepted Answer

A) the budget deficit. 
B) foreign saving. 
C) higher interest rates. 
D) new savings instruments. 
E) higher rates of inflation. 
A) the budget deficit. 
B) foreign saving. 
C) higher interest rates. 
D) new savings instruments. 
E) higher rates of inflation.

Question 13

Generational accounting implies that,holding the present value of government spending constant,budget deficits will not crowd out investment.

Accepted Answer

A) True 
 B)False

Question 14

The difference between the primary and total deficits is that the primary deficit:

Accepted Answer

A) is always balanced. 
B) includes spending on interest. 
C) excludes spending on interest. 
D) is never balanced. 
E) equals zero. 
A) is always balanced. 
B) includes spending on interest. 
C) excludes spending on interest. 
D) is never balanced. 
E) equals zero.

Question 15

If a government has a difficult time raising funds by borrowing,it ____ which generates __________.

Accepted Answer

A) must print money;inflation 
B) must print money;high interest rates 
C) raises taxes;inflation 
D) raises taxes;unemployment 
E) a and b 
A) must print money;inflation 
B) must print money;high interest rates 
C) raises taxes;inflation 
D) raises taxes;unemployment 
E) a and b

Question 16

The best indicator of whether or not a country can borrow is the credibility of the central government.

Accepted Answer

A) True 
 B)False

Question 17

What is the most pressing fiscal problem for the twenty-first century? What could be done to correct it?

Accepted Answer

The most pressing fiscal issue is rising

Question 18

Which of the following is (are)possible causes of rising health care expenditures?

Accepted Answer

A) people's preferences 
B) the falling cost of health insurance 
C) anecdotes about doctors who induce patients to spend less on medical care when they are young and healthy 
D) all of the above 
E) none of the above 
A) people's preferences 
B) the falling cost of health insurance 
C) anecdotes about doctors who induce patients to spend less on medical care when they are young and healthy 
D) all of the above 
E) none of the above

Question 19

Germany has the highest share of medical expenses to GDP.

Accepted Answer

A) True 
 B)False

Question 20

Empirical tests of crowding show strong evidence for crowding out.

Accepted Answer

A) True 
 B)False

Which of the following represents the government's budget constraint?

Which country has the highest share of medical expenses to GDP?

Which of the following are possible explanations for rising health care expenditures?

-Consider Figure 17.2,which shows the federal government receipts and outlays for the period 1934-2006,as percent of GDP.Which of the following were periods when the federal government ran a budget surplus?

Which of the following countries has defaulted on its debt?

Which of the following countries has negative government debt?

The current U.S.debt held by the public to GDP ratio is about:

If __________ hold(s),then holding the present value of government spending constant,budget deficits will not crowd out investment.

The ratio of all levels of government spending-to-GDP in the United States is under 40 percent.

If the government increases its budget deficit, is ameliorated if the economy has access to .

According to a Congressional Budget Office report,"A 125-Year Picture of the Federal Government's Share of the Economy,1950 to 2075," government revenues are projected to by the year ,assuming current federal government spending patterns.

If domestic saving is less than domestic investment,then investment can be financed by:

Generational accounting implies that,holding the present value of government spending constant,budget deficits will not crowd out investment.

The difference between the primary and total deficits is that the primary deficit:

If a government has a difficult time raising funds by borrowing,it which generates ______.

The best indicator of whether or not a country can borrow is the credibility of the central government.

What is the most pressing fiscal problem for the twenty-first century? What could be done to correct it?

Which of the following is (are)possible causes of rising health care expenditures?

Germany has the highest share of medical expenses to GDP.

Empirical tests of crowding show strong evidence for crowding out.

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

Exam 17: The Government and the Macroeconomy

Which of the following represents the government's budget constraint?

Which country has the highest share of medical expenses to GDP?

Which of the following are possible explanations for rising health care expenditures?

-Consider Figure 17.2,which shows the federal government receipts and outlays for the period 1934-2006,as percent of GDP.Which of the following were periods when the federal government ran a budget surplus?

Which of the following countries has defaulted on its debt?

Which of the following countries has negative government debt?

The current U.S.debt held by the public to GDP ratio is about:

If __________ hold(s),then holding the present value of government spending constant,budget deficits will not crowd out investment.

The ratio of all levels of government spending-to-GDP in the United States is under 40 percent.

If the government increases its budget deficit,__________ is ameliorated if the economy has access to __________.

According to a Congressional Budget Office report,"A 125-Year Picture of the Federal Government's Share of the Economy,1950 to 2075," government revenues are projected to __________ by the year __________,assuming current federal government spending patterns.

If domestic saving is less than domestic investment,then investment can be financed by:

Generational accounting implies that,holding the present value of government spending constant,budget deficits will not crowd out investment.

The difference between the primary and total deficits is that the primary deficit:

If a government has a difficult time raising funds by borrowing,it ____ which generates __________.

The best indicator of whether or not a country can borrow is the credibility of the central government.

What is the most pressing fiscal problem for the twenty-first century? What could be done to correct it?

Which of the following is (are)possible causes of rising health care expenditures?

Germany has the highest share of medical expenses to GDP.

Empirical tests of crowding show strong evidence for crowding out.

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

If the government increases its budget deficit, is ameliorated if the economy has access to .

According to a Congressional Budget Office report,"A 125-Year Picture of the Federal Government's Share of the Economy,1950 to 2075," government revenues are projected to by the year ,assuming current federal government spending patterns.

If a government has a difficult time raising funds by borrowing,it which generates ______.