A budget deficit is best defined as the
a. shortage of spending power created by a government spending cut.
b. shortage of spending power created by a tax increase.
c. accumulation of past debt that has not been covered by taxes.
d. amount by which a government's expenditures exceed receipts during a specific time period.
d
You might also like to view...
Steady-state growth refers to
a. intermediate-run periods. b. long-run equilibrium growth. c. output determination in the short run. d. None of the above
When a tax is imposed on sellers, producer surplus decreases but consumer surplus increases
a. True b. False Indicate whether the statement is true or false
Producer surplus equals the
a. value to buyers minus the amount paid by buyers. b. value to buyers minus the cost to sellers. c. amount received by sellers minus the cost to sellers. d. amount received by sellers minus the amount paid by buyers.
Indexing the tax system to take into account the effects of inflation would by itself
a. mean that only real interest earnings are taxed. b. mean an end to taxing capital gains. c. mean an increase in average tax rates. d. All of the above are correct.