From 2008 to 2012, the ratio of government debt toGDP in the United State a. increased markedly. b. decreased markedly. c.  was stable at a historically hiJ<h level. d. was stable at a historically low level

Automatic fiscal stabilizers the impact of demand or supply shocks on the economy since during booms and government's net tax revenues during recessions. A. magnify; increase; decrease B. magnify; decrease; increase C. does not affect; are constant; are constant D. dampen; increase; decrease E. dampen; decrease; increase

The overall effects of contractionary fiscal policy are a __________ in income, _________ in money demand, ____________ in the interest rate and a ________ in investment. a decrease, decrease, increase, decrease. b decrease, decrease, decrease, increase. c decrease, decrease, decrease, decrease. d none of the listed options. e decrease, increase, decrease, increase.

One criticism of the fiscal policy ineffectiveness is because: A.the velocity of money is predictable. B.it is dependent on Congress' approval. C.the crowding-out effect increases investment. D.prices and wages are sticky in the short run.

Suppose the federal government had budget deficits of $40 billion in year 1 and $50 billion in year 2 but had budget surpluses of $35 billion in year 3 and $50 billion in year 4. Also assume that it used its budget surpluses to pay down the public debt. At the end of these four years the federal governments public debt would have   A.) increased by $5 Billion B) increased by $90 billion C.) decreased by $85 billion D) decreased by $5 billion

None

Automatic stabilizers are increases in spending and reductions in taxes that__ ?which one? a.Are enacted by Congress when the economy enters in a recession b.Are the result of existing tax and revenue spending rules c.Are required by the Department of Treasury as needed d.Are enacted by the President when the economy enters in a recession

Why do governments typically issue general long-term debt? What types of services might be limited if debt was no longer a financing option?

Describe the potential consequences of maintaining high public debt.

For each of the descriptions below, decide whether it applies to a deficit, a surplus or the public debt. Deficit Surplus Public Debt Is calculated using factors The amount by which annual including treasury bills, notes, government revenues exceed expenditure. and bonds. Experienced by the U.S. federal government between 1998-2001, but rarely occurs in the modern American economy. Occurs when the cost of additional government programs exceed additional government income. The amount that government spending exceeds tax revenue.