Which of the following correctly describes factors that contributed to the change in the federal budget deficit between 1990 and 1998?
a. Federal taxes were cut by President George H.W. Bush and Congress in 1990, which helped in his reelection campaign in 1992 and contributed to a continually rising budget deficit during the 1990s.
b. Federal taxes were cut again by President Bill Clinton in 1993, which further contributed to a continually rising budget deficit during the 1990s.
c. Accelerated growth in federal outlays triggered the rapid expansion of the federal workforce between 1990 and 1998, which further contributed to a continually rising budget deficit during the 1990s.
d. Taxes were raised, spending was cut, productivity rose, consumer spending increased, the stock market was the strongest in history, and the country experienced a short-lived budget surplus.
e. Defense and international programs were identified as the only two areas of potential spending cuts.
d
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In the United States:
A. the middle class has become the largest class. B. the lower class has become the largest class. C. all three classes are the same size. D. the upper class has become the largest class.
Real GDP is calculated by:
A. multiplying nominal GDP by the appropriate price index times 100. B. dividing nominal GDP by the inflation rate times 100. C. dividing nominal GDP by the appropriate price index times 100. D. multiplying nominal GDP by the inflation rate times 100.
Expansionary fiscal policy is so named because it:
A. necessarily expands the size of government. B. involves an expansion of the nation's money supply. C. is aimed at achieving greater price stability. D. is designed to expand real GDP.
Under present U.S. law, cocaine is an example of
A. a capital good. B. a government-sponsored good. C. a government-inhibited good. D. a public good.