MindTap Economics, 1 Term (6 Months) Printed Access Card for Mceachern's ECON MACRO, 6th
6th Edition
ISBN: 9781337915595
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
thumb_up100%
Chapter 12, Problem 4P
To determine
the reasons for deficit in federal budget in 14 years since 1929.
Concept Introduction:The federal budget is used to finance a variety of federal expenses, which range from paying federal employees, to disbursing agricultural subsidies, to paying for U.S. military equipment. The federal budget is an itemized plan for the annual public expenditures of the United States. A budget deficit occurs when expenses exceed revenue and is an indicator of financial health.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
What are the president's budget request responsibilities?
How can a government that isn't running a deficit still get itself into financial trouble?
Why do government budget deficit grow during recessions?
Chapter 12 Solutions
MindTap Economics, 1 Term (6 Months) Printed Access Card for Mceachern's ECON MACRO, 6th
Knowledge Booster
Similar questions
- During the Great Recession of 20082009, what actions would have been required of Congress and the President had a balanced budget amendment to the Constitution been ratified? What impact would that have had on the unemployment rate?arrow_forwardWhen governments run budget deficits, how do they make up the differences between tax revenue and spending?arrow_forwardWhat is the difference between a budget deficit, a balanced budget, and a budget surplus?arrow_forward
- What is the difference between discretionary fiscal policy and automatic stabilizers?arrow_forwardWhat is the difference between expansionary fiscal policy and contractionary fiscal policy?arrow_forwardWhat are some of the arguments for and against a requirement that the federal government budget be balanced every year?arrow_forward
- Is expansionary fiscal policy more attractive to politicians who believe in larger government or to politicians who believe in smaller government? Explain your answer.arrow_forwardWhat is the main reason for employing contractionary fiscal policy in a time of strong economic growth?arrow_forwardWhy is government spending typically measured as a percentage of GDP rather than in nominal dollars?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning