The following table shows government spending and tax revenue for a hypothetical economy over a five-year period.  All figures are in billions. Year Government Spending Tax Revenues 1 $   800 $825 2 850 850 3 900 875 4 950 900 5 1000 925 i) In what years were there budget deficits and what were the amounts?     ii) In what years were there budget surpluses and what were the amounts?

Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $5 trillion while raising only $4 trillion worth of taxes. Instructions: Enter your responses rounded to one decimal place. a. What will be the government's deficit? 24 1000 billion b. If the government finances the deficit by issuing bonds, what amount of bonds will it issue? $4 1000 billion C. At a 3 percent rate of interest, how much interest will the government pay each year? $4 30 billion d. Add the interest payment to the government's $5 trillion expenditures for the next year, and assume that tax revenues remain at $4 trillion. In the second year, compute the () Deficit: $ billion (ii) Amount of new debt (bonds) issued to finance the deficit in the second year: $ billion (iii) Total debt at the end of the second year: $ billion (iv) Debt service requirement: $ billion < Prev 5 of 5 Next W tv N FEB 877 9.

When the total revenues in the federal government are greater than the total expenses in a given year, the budget: A. is balanced. B. has a profit. C. has a deficit. D. has a surplus.

2) Transfer payments are the ________ in the government&#39;s budget. A) smallest expenditure source B) largest expenditure source C) smallest revenue source D) largest revenue source 3) Personal taxes are the ________ in the government&#39;s budget. A) smallest expenditure source B) largest expenditure source C) smallest revenue source D) largest revenue source 4) A government&#39;s debt is increased when it A) balances is budget. B) buys more bonds. C) runs a deficit. D) runs a surplus. 5) When a government runs a surplus A) its debt increases. B) it must raise taxes. C) its debt decreases. D) it must cut spending. 6) The amount the government owes to the public is the federal debt. 7) If tax receipts are greater than government expenditures the government is running a surplus. 8) If the government runs a surplus, then the government debt increases. 9) Transfer payments are the largest part of the U.S.…

1. Why is a $100 billion increase in government spending on goods and services more expansionary than a $100 billion decrease in taxes?

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9. Make a graph showing the spending and tax revenue of your state government for as many years as you can find (use the government of your home country if you are not from the United States). What trends do you notice? What spending categories make up the largest share of the state budget? What are the largest sources of revenue? e

Government Spending Tax Revenues GDP Year 1 $450 $425 $2,000 Year 2 500 450 3,000 Year 3 600 500 4,000 Year 4 640 620 5,000 Year 5 680 580 4,800 Year 6 600 620 5,000   The accompanying table gives budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. The public debt declined in year

Explain how a budget deficit arises and what actions governments must take in this circumstance and how does the budget deficit relates to the national debt, use examples, please!

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