Exam 33: Fiscal Policy, Deficits, and Debt

As of 2015, most of the U.S.federal debt was owed to

The cyclically adjusted surplus in the U.S.went from +1.2 percent of GDP in 2000 to âˆ'1.2 percent of GDP in 2002.This suggests that the government during that period

The economic burden of World War II for the United States was primarily

What percentage of the U.S.public debt is held by U.S.government agencies and the Federal Reserve (2015)?

Increased government spending for investments such as highways or harbors financed by increasing the public debt would most likely

An appropriate fiscal policy for severe demand-pull inflation is

It is possible for an increase in government spending to encourage, instead of crowding out, private investment.

The payment of interest on the public debt in the United States mildly increases income inequality.

If government increases the size of its cyclically adjusted surplus, we can

Since actual budget deficits surpassed 10 percent of GDP in 2009,

Which of the following did not contribute directly to the Great Recession?

An increase in the cyclical deficits will automatically increase the cyclically adjusted budget deficit.

A large public debt would not bankrupt the Federal government, because it can refinance the debt or increase taxes to pay the debt.

An appropriate fiscal policy for a severe recession is

When current government expenditures exceed current tax revenues and the economy is achieving full employment,

In 2015, the Federal Reserve and other U.S.(federal) government agencies held about what percentage of U.S.federal debt?

Suppose the government purposely changes the economy's cyclically adjusted budget from a deficit of 0 percent of real GDP to a deficit of 3 percent of real GDP.The government is engaging in a(n)

A contractionary fiscal policy shifts the aggregate demand curve leftward.

The so-called recognition lag associated with fiscal policy is a result of how slowly the U.S.Congress moves.

One timing problem in using fiscal policy to counter a recession is the "operational lag" that occurs between the