Question 1

A federal deficit of $300 billion means that

Accepted Answer

A) the government has a total debt of $300 billion. 
B) government spending is $300 billion a year. 
C) the government is spending $300 billion a year more than it is collecting in taxes. 
D) the government plans on collecting $300 billion in taxes this year. 
A) the government has a total debt of $300 billion. 
B) government spending is $300 billion a year. 
C) the government is spending $300 billion a year more than it is collecting in taxes. 
D) the government plans on collecting $300 billion in taxes this year.

Question 2

Suppose the economy is initially operating at full employment.A fiscal policy action that results in an increase in the size of the budget deficit will cause which of the following in the long run?

Accepted Answer

A) an increase in real GDP. 
B) have no effect on both the level and composition of real GDP. 
C) a reduction in the price level. 
D) change the composition of real GDP. 
A) an increase in real GDP. 
B) have no effect on both the level and composition of real GDP. 
C) a reduction in the price level. 
D) change the composition of real GDP.

Question 3

Gross public debt is the amount of funds that

Accepted Answer

A) U.S.residents owe to foreign residents. 
B) states owe to the federal government. 
C) the federal government owes to taxpayers. 
D) the federal government owes to all holders of U.S.securities. 
A) U.S.residents owe to foreign residents. 
B) states owe to the federal government. 
C) the federal government owes to taxpayers. 
D) the federal government owes to all holders of U.S.securities.

Question 4

Which government program would be considered an "entitlement" program?

Accepted Answer

A) national defense 
B) subsidies for mass transportation 
C) law enforcement in major U.S.cities 
D) Social Security 
A) national defense 
B) subsidies for mass transportation 
C) law enforcement in major U.S.cities 
D) Social Security

Question 5

Legislated federal government payments that anyone who qualifies can receive are called

Accepted Answer

A) controllable expenditures. 
B) a fiscal stabilizer. 
C) balanced expenditures. 
D) entitlements. 
A) controllable expenditures. 
B) a fiscal stabilizer. 
C) balanced expenditures. 
D) entitlements.

A federal deficit of $300 billion means that

Suppose the economy is initially operating at full employment.A fiscal policy action that results in an increase in the size of the budget deficit will cause which of the following in the long run?

Gross public debt is the amount of funds that

Which government program would be considered an "entitlement" program?

Legislated federal government payments that anyone who qualifies can receive are called

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, real GDP, and the Multiplier

Fiscal Policy

Money, banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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Exam 14: Deficit Spending and the Public Debt

A federal deficit of $300 billion means that

Suppose the economy is initially operating at full employment.A fiscal policy action that results in an increase in the size of the budget deficit will cause which of the following in the long run?

Gross public debt is the amount of funds that

Which government program would be considered an "entitlement" program?

Legislated federal government payments that anyone who qualifies can receive are called

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, real GDP, and the Multiplier

Fiscal Policy

Money, banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters