Exam 17: The Economy, Government, and Economic Challenges Facing the United States

At one time in the history of the U.S. progressive income tax system, the top federal tax on high- income individuals was over 90 percent.

Describe the problem facing the U.S. Social Security system.

The first comprehensive government-administered social insurance system was enacted in:

According to the U.S. Department of Commerce (2012), which receives the highest percent of local outlay?

Each year, the federal and state governments spend over $3 and $1 trillion respectively to fund their activities.

Fluctuations in aggregate output are often called:

Large-scale regulations have brought about a reaction on the part of some people supporting the doctrine of:

Every year, the U.S. federal, state, and local governments together collect over _______________ in taxes.

A depression is a period of drastic decline in an economy.

Social Security is a pay-as-you-go system that depends on how many people are paying into it.

What is the government's direct role in the economy? How do federal and state governments spend their budgets? What are the three sources from which governments receive funding?

The U.S. Social Security system paid out almost immediately the money it took in. Thus, it was not funded:

A general fiscal policy is that if total spending in the economy is too low, the government should run a budget surplus.

What is fiscal policy? What is monetary policy? Why are these two policies called primary macroeconomic policies? How does monetary policy differ from fiscal policy?

The U.S. is in the globalization crisis today because it violated what is called the economic law of one price.

The majority of federal revenue comes from Social Security.

The policy of using the government budget surplus or deficit to control the level of spending in the economy is called:

Social Security was called an insurance plan but actually does not meet that definition.

The Keynesian Revolution introduced the concept that government:

In ten to twenty years, the Social Security system will be supporting many more retirees than it does now, while at the same time having many fewer contributors per retiree.