10. Compare and contrast the different forms of fiscal policy. Expansionary Fiscal Policy Contractionary Fiscal Policy Government Spending Taxes Aggregate Demand National Debt Economic Growth Inflation Employment

(i) Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which one will be the biggest figure? Explain your reasoning. Is it possible for a country to have a headline fiscal deficit and a primary fiscal surplus? Explain your reasoning. (ii)

4. What have been the various approaches advocated to reform budgeting processes at the state and local levels? 5. What are the five key areas of future state and local budget needs? Which one do you think is the most critical and why? Explain.

4. Study Questions and Problems #4 Evaluate the following statement. True or False: The most unlikely problem of the national debt is that the government will go bankrupt. True, because the government surplus is always growing. True, because the U.S. Treasury can roll over the debt by issuing new securities. False, because when government securities mature, the U.S. Treasury will default on its obligations. O False, because the government deficit is always growing.