Exam 31: Deficits and Debt: the Austerity Debate

If government has no debt initially but then annual revenues are $8 billion for 10 years while annual expenditures are $11 billion for 10 years, then the government has a:

If the federal government has a budget surplus in a given year, the national debt will:

What has been happening to the U.S.interest/GDP ratio since WWII?

Suppose that the economy has a structural deficit of $100 billion and a budget deficit of $100 billion. It follows that output:

The larger the debt and the inflation rate, the less debt will be eliminated by inflation.

The nominal deficit is $150 billion,inflation is 4%,and the total debt is $8 trillion.Does this economy have a real deficit or a real surplus? Show your calculations.

If the real deficit is $100 billion, the inflation rate is 7.5 percent, and the nominal deficit is $400 billion, then total debt is:

The total debt of the United States is $15 billion and the amount of government debt held by private investors is $6 trillion. The difference between these two is debt:

Define deficit and surplus.

In several years, bondholders may lose confidence in the United States willingness to pay back funds.

In the formula to calculate the real deficit, which of the following decreases the real deficit?

GDP provides an indication of:

Which of the following statements is true?

If the debt of the federal government increases by $10 billion in one year, the budget:

Debt needs to be judged relative to assets because:

Deficits and debt are often measured relative to GDP because:

In the long-run framework, deficits reduce:

If the real deficit is $200 billion, the inflation rate is 5 percent, and the debt is $3 trillion, then the nominal deficit is:

What is the difference between a passive deficit or surplus and the structural deficit or surplus?

What is the debt service?