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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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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to measure the deficit as a percentage of the economy or GDP
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government spending to strengthen the economy
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- ways to inject capital into the economy.- ways to encourage increased productivity.- ways to decrease unemployment.
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- 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 t r i l l i o n, o r 9.2 p e r c e n t o f G D P, a n d a p r o j e c t e d 10 - y e a r d e f i c i t o f m o r e t h a n

$1.3 trillion, or 9.2 percent of GDP, and a projected 10-year deficit of more than$ 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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deciding what will be funded and what will be cut
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deciding how to manage the government's tax revenue and expenditures
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to measure the deficit as a percentage of the economy or GDP
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to show how changes in fiscal policy can affect the economy

Which statements accurately describe debts and deficits? Check all that apply.

0%
government spending to strengthen the economy
0%
discretionary
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- ways to inject capital into the economy.- ways to encourage increased productivity.- ways to decrease unemployment.
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- 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
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deciding what will be funded and what will be cut
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discretionary
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shows a surplus.

What does deficit spending require a government to do?

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take on debt
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deciding what will be funded and what will be cut
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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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discretionary
0%
take on debt
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mandatory
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shows a surplus.

What does it mean to make "difficult choices" when creating a federal budget?

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government spending to strengthen the economy
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to measure the deficit as a percentage of the economy or GDP
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deciding what will be funded and what will be cut
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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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deciding how to manage the government's tax revenue and expenditures
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to measure the deficit as a percentage of the economy or GDP
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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

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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