Exam 16: Budget Deficits In The Short and Long Run

The structural deficit is equal to expenditures

The remarkable fact about the structural deficit after 1983 was that it was

A budget deficit is best defined as the

During the period from 1945 to 1975,the debt to GDP ratio

What happens typically to a budget deficit during an economic recovery?

Budget deficits are inflationary when

Analysis indicates that the economy is in a recessionary gap.Which of the following is the most appropriate policy mix in this situation?

Economists who argue in favor of rapid deficit reduction claim that deficit reduction will

If the President and Congress agree to balance the budget during a recession,then the appropriate monetary policy is

If a budget deficit increases interest rates,it is possible that investment will

The crowding-out effect of higher interest rates can be avoided by

The structural deficit can be used to estimate the thrust of current fiscal policy.

In contrast to Argentina in 2001,the United States debt is less of a burden because the U.S.debt is

Which of the following is true regarding the effect of deficits from 1980-2005 in the U.S.?

In 2008 and 2009,the budget deficit increased substantially because of

The fallacy in the strict crowding-out argument comes from supposing that

Why do economists view structural budget deficit as a good measure of the direction of the fiscal policy?

Analysis indicates that the economy is in a recessionary gap.Which of the following is the least appropriate policy mix in this situation?

Deficit is to debt as

The structural deficit can be defined as