Exam 13: Fiscal Policy

If the government runs a deficit, the total amount of government debt is

The largest source of revenue for the federal government is and the largest outlay is for )

In order for the United States to repay its international debt, the United States would need to

The aggregate demand curve is shifted rightward by

A decrease in government expenditures on goods and services is an example of .

In October 2008, President Bush enacted the Alternative Minimum Tax Relief Act of 2008, which resulted in lower taxes on labor income. According the supply- side view, as a result of this act the incentive to work _ and the tax wedge _ .

Spending on programs that result in transfer payments that depend on the economic state of individuals and businesses is called _.

Norway has a lower tax on dividend and interest income than does United Kingdom. We would expect Norway to have a _ tax wedge and a _ growth rate of real GDP.

Government expenditure on goods and services is the largest component of total federal government expenditures.

The term "induced taxes" refers to

Fiscal policy can be defined as

A decrease in the income tax rate

Between 2000 and 2005, Finland increased its tax on dividend (interest) income. As a result, the tax wedge and the growth rate of real GDP _ .

How can discretionary fiscal policy be used to close a deflationary gap?

Spending by state and local governments is similar to spending by the federal government in that both

The government's budget deficit or surplus equals the

If we compare the United States to France, the U.S. tax wedge is the French tax wedge.

Taking account of the supply- side effects, a tax cut on labor income employment and Potential GDP.

The structural surplus is the surplus

-What is the amount of the surplus or deficit incurred in year 4 by the government shown in the above table?