Exam 14: Deficit Spending and the Public Debt

In the long run,what effect does a government's deficit spending have on equilibrium real Gross Domestic Product (GDP)?

Suppose the economy is initially experiencing a recessionary gap.A reduction in the size of the budget deficit will cause which of the following in the short run?

Public debt is held as

The largest component of U.S.federal spending that contributes to the U.S.government budget deficit is

Which of the following statements about the public debt is true?

In which decade did the United States begin experiencing large trade deficits?

When government spending exceeds government revenues during a given period of time,

Net public debt is equal to

Which of the following statements about the budget deficit is true?

Which of the following is NOT an entitlement?

Net public debt is

What is the difference between the short run and the long run when there is full employment and the government engages in deficit spending?

How does a government budget deficit occur?

Since the late 1980s,the share of the net public debt owed to foreign interests has

In the current year,a nation's government spending equals $1.5 trillion and its revenues are $1.9 trillion.Which of the following is true?

Stocks change ________ whereas flows relate to ________.

Which is the fastest growing component of the federal government budget?

-Suppose that initially there is no public debt.Using the above table,what is the public debt as a percentage of GDP in Year 3?

Suppose the economy is initially operating at full employment.A reduction in the size of the budget deficit will cause which of the following in the long run?

If the net public debt remains unchanged during a given period,but the gross public debt increases,then which of the following statements must be correct?