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Fiscal Policy: Spending Quiz
The graph shows the federal budget from 1980 to 2010.In which period did the federal budget show the greatest deficit?
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0%
2000 to 2010
0%
one quarter of GDP.
0%
government spending to strengthen the economy
0%
take on debt
Which aspects of economic growth is the president addressing in this passage? Select all that apply.
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0%
to measure the deficit as a percentage of the economy or GDP
0%
government spending to strengthen the economy
0%
- ways to inject capital into the economy.- ways to encourage increased productivity.- ways to decrease unemployment.
0%
- a government's budget deficit causes debt to increase.- debt requires a government to pay back more than it has borrowed.- the deficit is the amount a government spends above what it brings in.
What is the purpose of the president's statement? When I took office 3 years ago, my Administration was left an annual deficit of $1.3 trillion, or 9.2 percent of GDP, and a projected 10-year deficit of more than $8 trillion. . . .Together with the deficit reduction I signed into law this past year, this [new] Budget will cut the deficit by $4 trillion. - President Barack Obama, 2012 Budget Message of the President
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0%
deciding what will be funded and what will be cut
0%
deciding how to manage the government's tax revenue and expenditures
0%
to measure the deficit as a percentage of the economy or GDP
0%
to show how changes in fiscal policy can affect the economy
Which statements accurately describe debts and deficits? Check all that apply.
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0%
government spending to strengthen the economy
0%
discretionary
0%
- ways to inject capital into the economy.- ways to encourage increased productivity.- ways to decrease unemployment.
0%
- a government's budget deficit causes debt to increase.- debt requires a government to pay back more than it has borrowed.- the deficit is the amount a government spends above what it brings in.
In this statement, which type of spending is President Obama referring to?
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take on debt
0%
deciding what will be funded and what will be cut
0%
discretionary
0%
shows a surplus.
What does deficit spending require a government to do?
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0%
take on debt
0%
deciding what will be funded and what will be cut
0%
to measure the deficit as a percentage of the economy or GDP
0%
shows a surplus.
Spending that is required by law is known as _________ spending.
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0%
discretionary
0%
take on debt
0%
mandatory
0%
shows a surplus.
What does it mean to make "difficult choices" when creating a federal budget?
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0%
government spending to strengthen the economy
0%
to measure the deficit as a percentage of the economy or GDP
0%
deciding what will be funded and what will be cut
0%
deciding how to manage the government's tax revenue and expenditures
What is the main goal in creating the federal budget?
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0%
deciding how to manage the government's tax revenue and expenditures
0%
to measure the deficit as a percentage of the economy or GDP
0%
deciding what will be funded and what will be cut
0%
to show how changes in fiscal policy can affect the economy
The graph shows government spending as a percentage of GDP from 1990 to 2012.At its peak, government spending made up about
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0%
government spending to strengthen the economy
0%
to measure the deficit as a percentage of the economy or GDP
0%
one quarter of GDP.
0%
shows a surplus.
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