# If the federal government has a budget surplus, then it is definitely - 96684

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## anjis_devis

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Question

1) The federal budget

A) is required to balance by law.

B) can have a surplus but not a deficit.

C) can have a deficit but not a surplus.

D) can have a deficit or a surplus but cannot be balanced.

E) can have a deficit, a surplus, or a balance

2) If the federal government has a budget surplus, then it is definitely the case that

A) tax revenue exceeds government outlays.

B) tax revenue and government outlays are equal.

C) the tax revenue is falling and government outlays are rising.

D) government outlays exceed tax revenue.

E) the tax revenue is rising and government outlays are falling.

3) The national debt is the amount

A) by which government tax revenue exceed outlays in a given year.

B) of debt outstanding that arises from past budget deficits.

C) by which government outlays exceed tax revenue in a given year.

D) of government outlays summed over time.

E) of all future entitlement spending.

4) In order to help the economy recover from a recession using fiscal policy, the government can ________ so that aggregate demand increases.

A) cut taxes

B) raise taxes

C) cut government expenditure on goods and services

D) raise interest rates

E) decrease the quantity of money

5) To eliminate a recessionary gap, the government can ________ government expenditures on goods and services or ________ taxes.

A) increase; increase

B) increase; decrease

C) decrease; increase

D) decrease; decrease

E) increase; not change

6) Automatic stabilizers are defined as

A) actions taken by the President without Congressional consent to stabilize the economy.

B) actions taken by an act of Congress to stabilize the economy.

C) policy that stabilizes without the need for action by the government.

D) discretionary policy taken to stabilize the economy.

E) policy that has no multiplier effects.

7) An example of automatic stabilizer is

A) Congress passing a tax rate reduction package.

B