Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 19, Problem 11QP
(a)
To determine
Evaluation of linking spending programs to visible hikes in tax.
(b)
To determine
Evaluate whether the congress can spend more revenue when amending the balanced budget
(c)
To determine
Evaluate the situation when people vote for the distribution of federal dollars to different categories of spending.
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Students have asked these similar questions
Should the United States government attempt to operate under a balanced budget? Why, or why not?
Which two programs, taken together, constitute
the largest share of federal expenditure in the U.S.
national budget?
Unemployment Insurance
Interest on Federal Debt Social Security
Medicaid Medicare
Who benefits most from these two programs?
Single Parents
The Elderly
Children
Married Couples
Which of the following is an example of a "government failure"?
Government implementing a balanced budget amendment to get the national debt under control to protect future generations against consequences of accumulated debt.
Government spending $56 billion on outdated technology, $1.2M to research social habits of monkeys, $25 billion lost on unreconciled transactions, $100 billion on Medicare overspending.
Government enforcing the immigration laws on the books, securing the U.S southern border, protecting U.S. citizens' constitutional rights under the 1st Amendment, 2nd Amendment, etc.
All of the answers are correct.
Knowledge Booster
Similar questions
- For the government to run efficiently, it must collect tax revenue from the people. What is the greatest source of revenue for the federal government? sales taxes income taxes tariffs property taxesarrow_forwardExplain how fiscal policy, monetary policy, and economic factors influence public budgeting. In what ways have you personally been impacted by state or local budgeting policies?arrow_forwardDescribe the problems with passing a balanced budget amendment.arrow_forward
- Refusing to pay taxes because you disapprove of how the money is being used by the government is an example of whatarrow_forwardMarket Failure, Public Sector and Public Choice( from chapters 7, 8 and 9) What finances the majority of federal spending? Explain your answer with the clear and supportive explaining reasonable idea with creative workarrow_forwardTRUE/FALSE Spending by local governments to stimulate or slow down their local economies is an example of fiscal policy.arrow_forward
- A government collects $175 billion quarterly in tax revenue. Each year it allocates $70 billion to the justice system and $130 billion for its own administrative costs. What percentage of annual tax revenue is allocated to these two categories of government spending? Group of answer choices 37.15% 28.57% 17.51% 27.58%arrow_forwardThe following levels of government determine a budget each year to show how much revenue the government expects to receive in taxes and other income and how the government plans to spend it: A, B, C, OR D a Federal only b State and federal only c Federal, state, and local d Local onlyarrow_forwardplease answer the following questions: numbers 2-5: 2. What is the largest component of the federal budget?A) EntitlementsC) DefenseB) Net interest 3. Which of the following sources of revenue is used to fund government spending?A) corporate contributionsB) political party contributionsC) taxationD) aggregate supply 4. Suppose an economy is slowing and more and more people are losing their jobs and, therefore, paying less income taxes. If policy makers try to avoid a budget deficit by raising taxe rates, this would probably A) help pull the economy out of a depression.B) make the economic slowdown worse.C) increase inflation. 5. Automatic stabilizers:A) work without the need for decisions from Congress or the White House.B) require explicit actions each year by policy makers to become active.C) increase elections during recessions.D) increase aggregate demand during an economic boom.arrow_forward
- Which of the following statements do economists generally disagree on? a) At an average tax rate of 50%, tax revenues are maximized for a government. b) No tax revenues would be collected when average tax rates are 100%. c) At very high average tax rates, increasing tax rates further would decrease tax revenues. d) No tax revenues would be collected when average tax rates are 0%.arrow_forwardAccording to economic theory, state governmentsA) will act in the public interest.B) will be biased toward chronic budget deficits.C) will act in the national interest.D) will do all of the above.E) will do none of the above.arrow_forwardGive three yes and three no arguments. Why Are tax cuts good for America?arrow_forward
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