Exam 23: Six Debates Over Macroeconomic Policy: Should the Government Balance Its Budget

In fiscal year 1997,the U.S.government ran a deficit of about $21.9 billion.In fiscal year 1998,the government ran a surplus of about $69.3 billion.Other things the same,we would expect this change

In fiscal year 2011,the U.S.government ran a deficit of about $1,300 billion.In fiscal year 2012,the government ran a deficit of about $1,087 billion.Other things the same,this change would be expected to have

Suppose that a country has an inflation rate of about 2 percent per year and a real GDP growth rate of about 2.5 percent per year.Then the government can have a deficit of about

In fiscal year 2008,the U.S.government ran a deficit of about $459 billion.In fiscal year 2009,the government ran a deficit of about $1,413 billion.Other things the same,this change would be expected to have

If tax rates are raised to avoid a deficit during a recession,then

Suppose that the country of Aquilonia has an inflation rate of about 6 percent per year and a real growth rate of about 3 percent per year.Suppose also that it has nominal GDP of about 500 billion units of currency and current nominal national debt of 100 billion units of domestic currency.Which of the following government spending and taxation figures will keep the debt to income ratio constant?

Which of the programs below would transfer wealth from the young to the old?

Government deficits mean that

Which of the following would transfer wealth from old to young?

Which of the following is not correct?

Suppose that the country of Aquilonia has an inflation rate of about 2 percent per year and a real growth rate of about 3 percent per year.Suppose also that it has nominal GDP of about 400 billion units of currency and current nominal national debt of 200 billion units of domestic currency.Which of the following government spending and taxation figures will keep the debt to-income ratio constant?

Part of the argument against deficits is that they

Which of the following reduces the potential burden of an increase in debt on future generations?

Last year a country's real GDP grew by 4%,it's inflation rate was 2.5%,and it's government budget deficit was about $250 billion.It's debt to GDP ratio was unchanged.About what was it's debt at the start of last year?

At the end of 2011 the U.S.government had a debt of about $10.12 trillion.During 2012 inflation was about 2.5% and real GDP grew about 1.6%.What is the largest deficit the government could have had in 2012 without raising the ratio of debt to GDP?

Suppose the budget deficit is rising 3 percent per year and nominal GDP is rising 5 percent per year.The debt created by these continuing deficits is

From the end of 2005 to the end of 2006,the United States ran a deficit of about $309 billion.The debt at the start of this period was about $4,592 billion.Which of the following combinations of inflation and real GDP growth would have allowed the government to run this deficit while keeping the ratio of real GDP to the debt about the same?

Over time,continued budget deficits lead to

Which of the following is not correct?

At the end of 2012,the government had a debt of about $11.3 trillion.If during 2013 real GDP rose 2% and inflation was 2.2%,what is the largest deficit the government could have run without raising the debt-to-GDP ratio?