If the economy's full-employment output is $5 trillion, actual output is $5 trillion, and the budget deficit is $13 billion, the deficit in this case is known as a O A) Full employment deficit. O B) Cyclical deficit. O C) Structural deficit.

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Suppose the stock of government debt in Canada at the end of one fiscal year is $482 billion. If the stock of debt rises to $501 billion by the end of the next fiscal year, then we know that in that year O A. the government had a primary budget deficit of $19 billion. O B. the government had a primary budget surplus of $19 billion. OC. the government had an overall budget deficit of S$19 billion. D. the government had an overall budget surplus of $19 billion.

The government budget constant for an economy is given below: G + TRị + rDt-1-7; = D¿ – Di-1 where G = government spending, TR is transfer payments, rD;-1 is interest payments on public debt, T is tax revenue and D is the stock of public debt. According to the government budget constraint in what way (or ways) can government expenditures be funded? O a. by a combination of tax revenue and borrowing from the public O b. by printing money O c. by tax revenue O d. by borrowing from the public O e. by borrowing from the central bank

Suppose the government incurs more debt to finance new military spending. To what extent will this impose a burden on future generations? O a. Government spending on military is considered investment expenditure. O b. Military spending does not at all benefit the future generations. O c. Government spending crowds out private investment spending. O d. Government debt needed to finance military expenditures is held by domestic entities.

If the government were to try to offset surplus years with deficit years over the business cycle, this would result in O A. a reduction in investment capital. O B. a higher debt-to-GDP ratio. OC. an annually balanced budget. O D. a structurally balanced budget. O E. a cyclically balanced budget.