Discuss the federal budget history of the United States since 1970. Make sure to note specifically the budget position of the United States during the last of the 1990s and compare it to the situation in 2012
What will be an ideal response?
Starting in the early 1970s, the federal budget went into deficit and remained there until 1997. Then from 1997 to 2001, the government had a budget surplus, that changed back to a deficit in 2002. Some of the budget deficits, particularly those in the 1980s and in recent years, were quite large. In the late 1990s the U.S. budget surplus was, at times, large—over $200 billion a year. In 2012, the budget deficit is very large, over $1,200 billion.
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Refer to the table above. Eduland has a comparative advantage in ________ shoes
A) both designing and stitching B) designing C) shutting its factory D) stitching
"Crowding out" is the theory that an increase in our federal government's budget deficit will likely:
a. increase the national debt. b. increase interest rates. c. decrease borrowing by households and businesses d. reduce the impact of the spending multiplier implies because of crowding out. e. all of these.
Will a home monopolist prefer a quota or a tariff to protect its output?
a. The home monopolist will prefer a tariff, because a tariff allows it to earn higher profits than a quota. b. The home monopolist will prefer a quota, because a quota may allow it to earn higher profits than a tariff. c. It is immaterial to the home monopolist because it will earn the same higher profits with each form of protection. d. The home monopolist will prefer neither, because it earns higher profits in a free-trade situation.
When the price of tacos went from $2 to $3 dollars each, the quantity demanded of burritos changed from 100 to 120 a day. The cross-price elasticity of demand for burritos calculated using the initial value method is:
A. 1.33. B. 0.75. C. 0.4. D. -0.75.