In 2008, the government increased its debt by $50 billion and it received $300 billion in revenue. How much money did the government spend in 2008? Select one: a. $220 billion b. $350 billion c. $300 billion d. $280 billion e. $250 billion

In 2008, the government increased its debt by $50 billion and it received $300 billion in revenue. How much money did the government spend in 2008? Select one: a. $220 billion b. $350 billion c. $300 billion d. $280 billion e. $250 billion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: stock of government debt Will Con ue to rise a. Increases its taxes. O b. Runs a budget surplus. Oc.…

A: When current expenses exceed/surpasses the amount of revenue collected via normal operations, a…

Q: Respond to all parts of the question. In your response, use substantive examples where appropriate.…

A: Answer 1. In the image above, it is given automatic expenditures that are consuming a growing share…

Q: Fiscal policy is conducted by the government and aims at boosting the economy; which of the…

A: The economies around the world have various entities, which are considered to be decision makers,…

Q: 40. Which of these would help a government fight a recession? raising taxes cutting taxes cutting…

A: The objective of this question is to identify which of the given options would be most effective in…

Q: When a government runs a deficit, it _________ a. It cuts fundings for defense and uses the money to…

A: The objective of the question is to understand what happens when a government runs a deficit.

Q: 1. Which of the following best describes a fiscal policy tool? A. government spending B. bank…

A: Fiscal policy instruments are utilized by legislatures that impact the economy. These essentially…

Q: 6. A reduction in government expenditure or an increase in taxes is defined as: 1. expansionary…

A: We know that Expansionary policy is employed with the aim of boosting aggregate demand when private…

Q: One common argument against discretionary fiscal policy is: “Since the economy returns to equi-…

A: Discretionary fiscal policy refers to the use of government spending and taxation decisions with the…

Q: Assume the economy is at an output level that is above the potential GDP, if a contrary fiscal…

A: Fiscal Policy refers to changes in the government expenditure or tax rates in order to bring the…

Q: According to the traditional view on government debt, a tax cut without a cut in government…

A: The governments use fiscal and monetary policies to achieve certain economic goals. The fiscal…

Q: 9 T.G (S) 100 ВО 60 40 20 G T 0 $100 200 300 400 500 600 700 800 900 GDP Refer to the diagram, where…

A: The tax revenue for the government is represented by the line T and the government expenditure is…

Q: budgetary deficit is 20 billion and borrowings and other liabilities are 30 billion what is the…

A: A fiscal deficit is a gap between government income and expenditure, fiscal deficits occur when the…

Q: In the graph you've just made, what is the level of private saving when the government has a $1…

A: Private savings is that amount of income which is left for consumption after taxes. Private savings…

Q: The savings rate is a. the difference between gross income and disposable income. b. the ratio…

A: In an economic view, when we receive income, after consuming a part of the income, we save the…

Q: What is Fiscal policy? Is the answer A? Fiscal policy is when the government could spend more money…

A: Fiscal policy means the government's use of spending and taxation to influence the economy. It…

Q: The structural budget balance is The cyclical budget balance is

A: Budget balance is difference between government revenue and government outlays. i.e., Budget…

Q: An example of a fiscal policy designed to increase real GDP is a. a cut in taxes. b. an increase in…

A: Fiscal policies are designed to influence the aggregate demand, which further leads to affect the…

Q: 2. Give three examples of governments whose use of fiscal policy leaves a lot to be desired? Explain…

A: GDP is the total value of all goods and services produced within a country's borders over a specific…

Q: Suppose that in 2018 the federal government spent $3.4 trillion and collected $2.8 trillion in…

A: Deficits occur when government spending and transfer payments exceed tax revenues.

Q: Which of the following is an example of contractionary fiscal policy? A. Cutting spending B.…

A: Fiscal policies are managed/controlled by the government of the country whereas monetary policies…

Q: A federal budget deficit is financed by: a. Printing money b. Selling Treasury bonds c. Raising…

A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…

Q: In 2019, the government collected $550 billion in taxes and the government had a $120 billion budget…

A: Budget Deficit occurs when government spending exceeds the revenue collected by government. Budget…

Q: In 2011, an article in the Economist argued that "heavy public debt risks more than just crowding…

A: The crowding-out effect refers to a situation in which increased government spending or borrowing…

Q: eal government purchases may fall when the price level rises if which of the following is true?…

A: Quantitative Easing (QE):Quantitative Easing is a monetary policy tool used by central banks to…

Q: During the second quarter of 2009, the economy was in recession and the output gap was $0 8 trillion…

A: The question is about the concept of fiscal stimulus and its impact on the output gap of an economy.…

Q: The hypothetical information in the following table shows what the situation will be in 2016 if the…

A: A contractionary fiscal policy refers to a policy that is aimed at reducing economic activity in an…

Q: Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation

A: Beginning debt: $20 billionTax revenue: $5 billionGovernment spending: $15 billionUnderstanding the…

Q: Increasing government spending

A: Option (B). Government actively increases spending in response to recession, so it's an active…

Q: A. Calculate the levels of consumption and savings that occurs when the economy is in equilibrium.…

Question

In 2008, the government increased its debt by $50 billion and it received $300 billion in revenue. How much money did the government spend in 2008?

Select one:

a. $220 billion

b. $350 billion

c. $300 billion

d. $280 billion

e. $250 billion

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What does an increase in the income tax rate illustrate? An increase in the income tax rate is an example of _______. A. increasing the government deficit B. discretionary fiscal policy C. automatic fiscal policy D. increasing the government debt
The Federal Budget is divided into Mandatory and Discretionary spending. Decide which statement is correct. 1. Social Security is mandatory and interest on national debt is mandatory 2. Military spending is mandatory and interest on national debt is mandatory 3.Interest on national debt is discretionary and Medicare is discretionary 4.Medicare is mandatory and military spending is discretionary.
Which legislative action shifted the budget power from the executive branch to the legislative branch? a. Budget and Accounting Act of 1921 b. Congressional Budget and Impoundment Control Act of 1974 c. Balanced Budget and Emergency Deficit Control Act of 1985 d. Budget Enforcement Act of 1990
Suppose that in 2005 the government collected $240 billion in tax revenue and spent $270 billion, while in 2006 the government revenue increased to $250 billion and its spending increased to $300 billion. If the government had a debt of $300 billion at the beginning of 2005, how much debt would it have by the end of 2006? Select one: a. $400 billion b. $380 billion c. $350 billion d. $320 billion e. $280 billion
Which of the following is NOT a component of federal fiscal policy? A. Federal tax revenues B. Federal government expenditures C. Federal budget deficit D. All of the above are components of federal fiscal policy
4. The government decides to pursue a policy of keeping the amount of tax revenue it collects to be a fixed amount. In terms of tax rates, is this policy pro-cyclical, countercyclical, or neutral? Is this a good policy for the government to adopt?
Answer exercises 11-14 on the basis of the following information. Assume that equilibrium real GDP is $800 billion, potential real GDP is $950 billion, the MPC is .80, and the MPI is .40.
Title Actions by the Federal Government that decrease the progressivity of the tax system: a. decrease th Description Actions by the Federal Government that decrease the progressivity of the tax system: a. decrease the amount of government spending b. increase the effects of automatic stabilizers c. decrease the effects of automatic stabilizers d. increase the amount of taxation
2. If government expenditures are $100 and the average tax rate is 0.6, derive the equation for the budget line and draw the budget line. What is the real GDP when there is no deficit and no surplus?
1. Why is a $100 billion increase in government spending on goods and services more expansionary than a $100 billion decrease in taxes?
7. The national debt a. Is paid off each fiscal year when the debt is refinanced. b. Will never be paid off in any given year, but it will be entirely paid off when it is refinanced over a number of years. Will be paid off when the budget is finally balanced. Equals the dollar amount of outstanding U.S. Treasury bonds. c d
What is a default on the national debt? A. The Federal Reserve purchases Treasurys issued by the federal government. B. The federal government buys back its own debt from the holders of United States Treasuries by having the Treasury print money. C. The holders of United States Treasurys forgive the debt and provide the government with cash. D. The federal government declares bankruptcy or restructures the payments on its debts with the lenders.