Suppose that in the year 2015 our national debt were $8 trillion and our budget deficit were $250 billion. If a plan to gradually reduce the deficit and to balance the budget in the year 2025 were successful, make an estimate of the national debt in 2025.
What will be an ideal response?
Assume an average deficit of $125 billion for 10 years = $1.25 trillion. $1.25 trillion + $8 trillion = $9.25 trillion.
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What four conditions define a perfectly competitive market?
What will be an ideal response?
Figure 16-1
In Figure 16-1, there are four levels of income. G is government expenditures and TT is taxes less transfers. At which level of income is the actual deficit the greatest?
a.
Y4
b.
Y3
c.
Y2
d.
Y1
The marginal social cost, MSC, of producing a good or service equals
A) MC + MB. B) MB + marginal external cost. C) MB + marginal external benefit. D) MC + marginal external cost.
After an adverse supply shock occurs, the ____________ curve shifts _____________ resulting in a(n) _________________ in the price level and a(n) ________________ in Real GDP
A) AD; leftward; decrease; decrease B) AD; rightward; increase; increase C) SRAS; rightward; decrease; increase D) SRAS; leftward; increase; decrease