Exam 23: Six Debates Over Macroeconomic Policy: Should the Government Balance Its Budget

In fiscal year 2001,the U.S.government ran a surplus of about $127 billion.In fiscal year 2002,the government ran a deficit of $159 billion.Other things the same,this change would be expected to have

In June of 2010,the government had a debt of about $8.6 trillion.Over the next year real GDP grew by about 1.6% and inflation was about 2%.What is the largest deficit the government could have run over this time without raising the debt-to-GDP ratio?

If the budget deficit were reduced,

Which of the programs below would not transfer wealth from young to old generations?

Which of the following does not reduce the potential burden of an increase in debt on future generations?

A country has a growth rate of 3%.Government spending is 60 billion units of currency and its tax revenues are 32 billion units of currency.The current national debt is 400 billion units of currency.At which inflation rate is its debt-to-income ratio unchanged?

Which of the following are justifications for running a budget deficit?

Which of the following is not correct?

At the end of 2007,the government had a debt of about $5,000 billion.During 2007,real GDP grew by about 0.8 percent and inflation was about 2.7 percent.About what is the largest deficit the government could have run without raising the debt-to-GDP ratio?

Last year a country's real GDP grew by 2%,it's inflation rate was 3%,and it's government budget deficit was about $200 billion.It's debt-to-GDP ratio was unchanged.About what was it's debt at the start of last year?

Which of the following is not a typical justification for running a budget deficit?

Which of the following is correct?

A balanced budget would require that when real GDP was growing rapidly,

The national debt

Which of the following are justifications for running a budget deficit?

From fiscal year 2012 to fiscal year 2013 China's budget deficit rose 50%.Other things the same,we would expect this to have

Between 1980 and 1995 government debt as a percentage of GDP

The effect of budget deficits on interest rates