bursting of the dot-com bubble in 2000, along with the terrorist attacks in 2001, made the U.S. government Multiple Choice   decrease its cyclically adjusted budget deficit from 2000 to 2002.   increase its cyclically adjusted budget surplus from 2000 to 2002.   increase its cyclically adjusted budget deficit from 2000 to 2002.   increase its actual budget surplus from 2000 to 2002.

Q: A country has a rate of growth (g) of 0.75 %, a debt-to-income of 94% and a primary deficit of 0.9%…

A: The percentage change within the value of all products and services produced in a very country over…

Q: Which types of budget cuts only reduce areas that have overspending? Group of answer choices…

A: Budgets refers to the preparation of the spending plans based on the income. Budgets are prepared by…

Q: The 'Crowding out' effect may occur as a result of: An increase in interest rate government…

A: Crowding out effect is caused by the rise in government expenditure and rise in the interest.

Q: 29) When private expenditures decrease as a result of increased government 29) spending, this is…

A: NOTE: “Since you have posted a question with multiple sub parts, we will provide the solution only…

Q: An increase in the government's budget deficit means Options: public saving is greater than $0 and…

A: A government is said to be in deficit when it's revenue is less than its spending. Such situation is…

Q: Increasing taxes to reduce national debt is more damaging to the economy than spending reforms…

A: Answer is number 2 i.e. Tax hikes harm economic recovery slowing growth, reducing GDP by more than…

Q: Expansionary fiscal policy occurs when the government decreases spending or increases taxes to…

A: Fiscal policy is the tool used by government to control the economy.

Q: The direct cost of debt depends on: fiscal policy. the amount of the deficit. the interest rate. the…

A: This can be defined as a concept that shows the cost incurred in the production process of a…

Q: After the elections of 2010, the U.S. Senate remained controlled by the Democrats, but the majority…

A: The fiscal policy implementation decision recognition information lag refers to the time it takes…

Q: I'm studying for an exam and this question is honestly going right over my head. I would love a bit…

A: Prior to Covid-19 and resulting financial crisis the US government was already in deficit spending…

Q: During a recession, automatic stabilizers cause the federal deficit to Group of answer choices…

A: Budget is the term used to describe the government's document that details its receipts and outlays.…

Q: One concern about the government borrowing in order to finance its projects is known as the…

A: The aggregate demand curve jn a closed economy comprises of AD = C + I + G where C = consumption, I…

Q: Expansionary fiscal policy is so named because it: involves an expansion of the nation's money…

A: Expansionary fiscal policy:- As the name suggest , it is used to expand the economy.  The…

Q: Entitlement spending is Group of answer choices is another word for Discretionary Spending required…

A: Entitlement services like medicaid and medicare, as well as necessary interest payments on the…

Q: The increase in the government deficit, in 2020, was a combination of Multiple Choice fiscal policy…

A: This situation occurs when a govt., company, or individual's spending exceeds its income or revenue…

Q: Suppose the US Federal Government decides to engage in deficit spending whereby it increases its…

A: Fiscal policy means using government expenditure and tax policies to influence the economic path…

Q: Which of the below statements is INCORRECT about budget deficits and surpluses? Group of answer…

A: A budget surplus is when additional cash is leftover in a budget after costs are paid. A budget…

Q: Which of the following budget philosophies advocates keeping the budget in balance every year,…

A: Cyclically balanced budget advocates keeping the budget in balance every year, except during…

Q: Countercyclical fiscal policy consists of using an expansionary fiscal policy during and a…

A: The aggregate demand refers to the total demand for all the goods and services produced in an…

Q: Since 1930 the period of highest government budget deficits for the U.S. took place in the 1990s the…

A: A budget deficit refers to the deficit that occurs when expenses exceed revenue and can indicate the…

Q: The 50 unemployed have nothing to live on; prudence and compassion alike dictate that something be…

A: 1) Aggregate demand consists of all consumer goods, capital goods (factories and equipment),…

Q: Suppose the US Federal Government decides to engage in deficit spending whereby it increases its…

A: A budget deficit may result in public sector debt, and also a rise in the national debt.

Q: After the elections of 2010, the U.S. Senate remained controlled by the Democrats, but the majority…

A: The fiscal policy implementation decision recognition information lag, often referred to as the…

Q: After the elections of 2010, the U.S. Senate remained controlled by the Democrats, but the majority…

A: The fiscal policy implementation decision recognition information lag refers to the time it takes…

Q: The nation of Cantania regularly experiences changes in its national budget situation. In some…

A: Budget Deficit: Government spending > Government revenue Budget Surplus: Government spending <…

Q: Using the government expenditure multiplier from the simple model presented in the chapter, the plan…

A: To find whether plan-A will help congress achieve its goal or plan-B, we use the…

Q: During the 1990s, the federal budget moved from a deficit to a surplus. What factors accounted for…

A: A budget surplus implies the government will have an extra fund and these funds will be used to pay…

Q: A cyclically adjusted budget deficit is also called a: Select one: national budget deficit…

A: Deficit refers to the excess of government expenditure over the government surplus in a year.…

Q: During 1970-1997, the U.S. federal government was in surplus every year. balanced every year. in…

A: A budget refers to a spending plan based on receipts and expenses. Budget refers to an estimate of…

Q: Between 1998 and 2000, the U.S. government had higher revenue than spending. Which of the following…

A: National debt in period N = National debt in period (N - 1) + Increase in budget deficit (- Decrease…

Q: List what specific, deliberate actions the federal government could take to enact expansionary…

A: Expansionary fiscal policy is aimed at increasing aggregate demand when the economy is in a…

Q: Which of the reasons given is often cited as a benefit of running a budget deficit? operating with a…

A: The difference between the total income and total expenditure of the government is known as a budget…

Q: If the economy is producing more than its potential GDP, deficit than the actual deficit.…

A: Gross Domestic Product refers to measures of the monetary value of final products and services i.e.,…