Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 30, Problem 9SCQ
True or False:
- Federal spending has grown substantially in recent decades.
- By world standards, the U.S. government controls a relatively large share of the U.S. economy.
- A majority of the federal government’s revenue Is collected through personal income taxes.
- Education spending is slightly larger at the federal level than at the state and local level.
- State and local government spending has not risen much in recent decades.
- Defense spending is higher now than ever.
- The share of the economy going to federal taxes has increased substantially over time.
- Foreign aid is a large portion, although less than half, of federal spending.
- Federal deficits have been very large for the last two decades.
- The accumulated federal debt as a share of
GDP is near an all-time high.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Federal budget deficits occur when
Interest payment on national debt increase from one year to the next.
High level of unemployment uses up tax collections.
Federal government spends more money than it collects in taxes in a given year.
More money is being spent by the government than it was being allocated.
Who prepares and passes the federal budget?
The President and Congress
State Legislatures
The President
Congress
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%
Chapter 30 Solutions
Principles of Economics 2e
Ch. 30 - When governments run budget deficits, how do they...Ch. 30 - When governments run budget surpluses, what is...Ch. 30 - Is it possible for a nation to run budget deficits...Ch. 30 - Suppose that gifts were taxed at a rate of 10 for...Ch. 30 - If an individual owns a corporation for which he...Ch. 30 - What taxes would an individual pay if he were...Ch. 30 - The social security tax is 6.2 on employees income...Ch. 30 - Debt has a certain self-reinforcing quality to it....Ch. 30 - True or False: Federal spending has grown...Ch. 30 - What is the main reason for employing...
Ch. 30 - What is the main reason for employing expansionary...Ch. 30 - In a recession, does the actual budget surplus or...Ch. 30 - What is the main advantage of automatic...Ch. 30 - Explain how automatic stabilizers work, both on...Ch. 30 - What would happen if expansionary fiscal policy...Ch. 30 - What would happen if contractionary fiscal policy...Ch. 30 - Do you think the typical time lag for fiscal...Ch. 30 - How would a balanced budget amendment affect a...Ch. 30 - How would a balanced budget amendment change the...Ch. 30 - Give some examples of changes in federal spending...Ch. 30 - Have the spending and taxes of the U.S. federal...Ch. 30 - What are the main categories of U.S. federal...Ch. 30 - What is the difference between a budget deficit, a...Ch. 30 - Have spending and taxes by state and local...Ch. 30 - What are the main categories of U.S. federal...Ch. 30 - What is the difference between a progressive tax,...Ch. 30 - What has been the general pattern of U.S. budget...Ch. 30 - What is the difference between a budget deficit...Ch. 30 - What is the difference between expansionary fiscal...Ch. 30 - Under what general macroeconomic circumstances...Ch. 30 - What is the difference between discretionary...Ch. 30 - Why do automatic stabilizers function...Ch. 30 - What is the standardized employment budget?Ch. 30 - What are some practical weaknesses of...Ch. 30 - What are some of the arguments for and against a...Ch. 30 - Why is government spending typically measured as a...Ch. 30 - Why are expenditures such as crime prevention and...Ch. 30 - Why is spending by the U.S. government on...Ch. 30 - Excise taxes on tobacco and alcohol and state...Ch. 30 - What is the benefit of having state and local...Ch. 30 - In a booming economy, is the federal government...Ch. 30 - Economist Arthur Laffer famously pointed out that,...Ch. 30 - Is it possible for a nation to run budget deficits...Ch. 30 - How will cuts in state budget spending affect...Ch. 30 - Is expansionary fiscal policy more attractive to...Ch. 30 - Is Medicaid (federal government aid to low-income...Ch. 30 - What is a potential problem with a temporary tax...Ch. 30 - If the government gives a 300 tax cut to everyone...Ch. 30 - Do you agree or disagree with this statement: It...Ch. 30 - During the Great Recession of 20082009, what...Ch. 30 - A government starts off with a total debt of $3.5...Ch. 30 - If a government runs a budget deficit of 10...Ch. 30 - Specify whether expansionary or contractionary...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Define cost object and give three examples.
Cost Accounting (15th Edition)
How does real-time performance management compare to the traditional annual performance process? How can a real...
Principles of Management
Discussion Questions 1. What characteristics of the product or manufacturing process would lead a company to us...
Managerial Accounting (5th Edition)
S4–14 Calculating the current ratio
Learning Objective 6
End of Line Montana Registration has these account b...
Horngren's Accounting (12th Edition)
E6-14 Using accounting vocabulary
Learning Objective 1, 2
Match the accounting terms with the corresponding d...
Horngren's Accounting (11th Edition)
Using the following account balances, calculate for the two years presented: A. working capital B. current rati...
Principles of Accounting Volume 1
Knowledge Booster
Similar questions
- Have spending and taxes by state and local governments In the United States had a generally upward or downward trend in the last few decades?arrow_forwardOne of the major differences between the liberal and conservative political ideologies in the United States is theirview on how active of a role the government should take regarding fiscal issues. Develop an argument about theextent to which the government should take an active role in the marketplace.arrow_forwardThe single largest source of revenue for the federal government are corporate income taxes. True or Falsearrow_forward
- TRUE/FALSE Spending by local governments to stimulate or slow down their local economies is an example of fiscal policy.arrow_forwardGovernment spending in the federal budget that Congress can adjust as it wishes is calledarrow_forwardThere is a federal budget deficit when the government spends less that it collects in taxes. the government spends more that it collects in taxes. taxes are too high. the government spends the same amount it collects in taxes.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub CoPrinciples of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax