MACROECONOMICS
14th Edition
ISBN: 9781337794985
Author: Baumol
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 16, Problem 2DQ
To determine
To describe: The condition if there is continuous increase in the deficit of the nation.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Explain and expand on How does fiscal discipline help businesses to grow in an economy?
What is considered "too much" debt or "too large" a deficit? Are you able to provide any guidelines for deficit or debt ceilings?
How does the government spend? How does the government tax? What are the budget deficits?
Knowledge Booster
Similar questions
- Look into the current level of the national debt and the federal deficit in the U.S. Pick any government program and research how much the U.S. spends on it. Does the amount surprise you? What might happen if the budget for the program were increased or reduced? Should the current deficit and debt be cut down? What would be some pros and cons of reducing them?arrow_forwardHow does fiscal discipline help businesses grow in an economyarrow_forwardChoose one: Ο Α. Ο OB. 3 O C. 4 O D. 18arrow_forward
- What are the budget deficitsarrow_forward20 Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $24.19 billion. The country collected $22.9 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance? Enter your answer to two decimal places. budget balance: $ In the last fiscal year, Lilliput was running a budget surplus a budget deficit a balanced budget billionarrow_forwardIf the budget deficit is lower than it was last year, we could say that...arrow_forward
- Why do some economists advocate taxing consumption rather than income? Give two arguments why wealthy taxpayers should pay more taxes than poor taxers? Pakistan has trade imbalance where our imports are far more than our exports, based on comparative advantage theory suggest ways and means by which we can improve international trade? Unemployment is a global issue, what steps government had to take to curb it. Suggest by which we can improve employment.arrow_forward"Define in a formula, the federal budget deficit." please with explanation !! thank you !arrow_forwardAre we passing the national debt burden onto our children? Is this a problem?arrow_forward
- explain four reason why is tax important for a countryarrow_forwardWhat are the benefits of tax reform in the Philippines?arrow_forwardDiscuss the federal budget of the U.S government. should it always be balanced? when is the most appropriate time economically speaking for the federal budget be in a deficit? as a borrower how is the federal government different from the average U.S adult?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co