Exam 18: The Government and the Macroeconomy

When we discuss government expenditure, we are talking about only purchases of goods and services.

The CBO forecasts that the number of workers per retiree in the social security program will rise from 2 to 3.3 in the coming decades.

Which of the following countries has defaulted on its debt?

The idea that present generations benefit from borrowing what future generations must pay is called:

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

Under which condition can the government continue to accumulate debt?

In the language of generational accounting, by issuing bonds to finance a war in the present:

During which period did the United States have the largest debt-to-GDP ratio? Why?

There is a "magic level" of the debt-GDP ratio that triggers government default.

The government's intertemporal budget constraint assumes the budget is always balanced.

The CBO forecasts that the number of workers per retiree in the social security program will ________ from ________ to ________ in the coming decades.

The source(s) of funds for the government is/are:

Since 1940, the largest gross federal debt-to-GDP ratio occurred during ________, when it reached about ________.

In 2005, the debt-to-GDP ratio in the United States was about ________ percent, but by 2011 it was about ________ percent.

If a government has a difficult time raising funds by borrowing, it must print money, which generates inflation.

When we discuss government expenditure, we are talking about only federal government expenditures.

According to the text, the main culprit for the rapid increase in medical expenditures is:

An explanation of why governments are willing to burden future generations with debt to finance a war today is:

In 2011, the ratio of federal government spending to GDP in the United States was about:

In the intertemporal budget constraint, the term $( 1 + i ) B _ { 1 }$ is called the: