Which of the following is true?   a. The size of the national debt currently is about the same size as it was during World War II.   b. The national debt increases in size whenever the federal government has a surplus budget.   c. The national debt's size decreased steadily after 1980.   d. The current U.S. national debt is over $12.0 trillion.

Analyse the various policy measures that a government might have to undertake to deal with and finance a growing fiscal deficit.

key limitations to fiscal policy

Budget deficit is defined as the difference between government spending and tax revenues. As President Clinton once stated, dealing with the budget deficit is simple "arithmetic". We need to cut government spending and increase tax revenues to lower the deficit. 1. If you are one of the policy makers determined to control the federal budget, which federal spending item(s) would you cut? 2. How would you change the tax policy to increase the tax revenue? Would you increase the income tax rate or decrease it to increase revenue (review the Laffer curve and comment on the relationship between the tax rate and and tax revenue)? How would you change the payroll tax? Who should have the burden of tax? Please review the 2018 Trump tax law and Biden administrations tax proposals. Below are two short videos: One supports the tax cuts, the other opposes. Tax cuts will spark growth and employment (Laffer) Six things we'll regret about Trump tax cuts 3. What is the impact of Covid-19 on the budget…

In the beginning of the year, the economy has public debt (or national debt) of $450 million. This year, tax revenues collected by the government is $40 million and government outlays are $55 million. At the end of the year, this country has public debt (or national debt) of $____ million. Your Answer: Answer