ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Why did the budget surpluses in 2000 and 2001 give way to a series of budget deficits beginning in 2002? Why did those deficits increase substantially beginning in 2008?
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- Describe how the federal deficit is a burden on the shoulders of future generations.arrow_forwardDescribe the major differences in Republicans and Democrats plans on how they plan to create new jobs and a better economy and handle deficit spending?arrow_forwardWhat budget changes would have to occur in order to lower an annual deficit? Annual expenditures would have to rise. Annual expenditures would have to decline and annual tax collections would have to rise. Annual tax collections would have to fall. Annual expenditures would have to rise and annual tax collections would have to fall.arrow_forward
- All of the following rules are effective in reducing the budget deficit except: A. spending caps B. inflation targeting C. Constitutional amendments D. PAYGO rulesarrow_forwardHow and why would the line-item veto influence budget reforms and reduce deficits?arrow_forwardWhat was the budget agenda for President George W. Bush's administration?arrow_forward
- What would happen to the budget deficit if the:a) GDP growth rate jumped from 1 percent to 3 percent?b) inflation increased by 2 percentage points?arrow_forwardWhat's the difference between a structural and a passive budget deficit? What contributes to a passive deficit? Use the distinction between passive and structural deficits and surpluses to explain how the $5.9 trillion surplus that economists back in 2000 predicted would occur over 15 years quickly disappeared during the 2001/2002 recessionarrow_forwardWhat would happen to the stated sizes of Federal budget deficits or surpluses if the current annual additions or subtractions from the Social Security trust fund were excluded?arrow_forward
- Analyze the challenges that the US economy is facing to reduce the deficitarrow_forwardHow was the recession in 2020 different than the recession in 2008? What was the government response in 2008 vs. 2020? How much was spent on stimulus in 2008 vs. 2020 (be sure you are looking at inflation-adjusted numbers)? Compare and contrast some of the major stimulus programs put in place in 2008 and in 2020. Was the government more successful in 2008 or 2020? Whyarrow_forwardHow is the Social Security system currently influencing the size of the budget deficit? If it is not re-formed, how will Social Security influence the budget deficit a decade from now? Is this a cause for concern? Why or why not?arrow_forward
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