Question 4 (1) Differentiate between the following terms: a. a budget deficit. b. the government debt. a budget surplus с. d. a balanced budget.
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- When governments run budget deficits, how do they make up the differences between tax revenue and spending?Which one of the following statements regarding fiscal policy and the budget is (2) correct?(a) When the government plans to stimulate economic activity, it can increasespending or reduce taxes;Differentiate between the following terms:a. a budget deficit. b. the government debt. c. a budget surplus d. a balanced budget.
- 4) Why should the federal government not be required to balance its budget while state and local governments are?1. Below are the goals of fiscal policy: i. Employment ii. Economic stability iii. Inequitable distribution of income iv. Universal brotherhood and justice i and ii i, ii, and iii i, ii, iii, and iv i, ii, and ivStyles Do you want to download proofing tools and future updates? Download Don't show again may be a victim of software counterfeiting. Avoid interruption and keep your files safe with genuine Office today. 2. What are the budget revenues for a government to finance government spending?
- Questions:4. what is the government's current budget balance?billions of dollarsDefine government budget in not more than 3 linesWhen the total revenues in the federal government are greater than the total expenses in a given year, the budget: A. is balanced. B. has a profit. C. has a deficit. D. has a surplus.
- 1. Below are the goals of fiscal policy: i. Employment ii. Economic stability iii. Inequitable distribution of income iv. Universal brotherhood and justice A) i and ii B) i, ii, and iii C) i, ii, iii, and iv D) i, ii, and ivSuppose that the economy is in a recession as a result of a fall in investment spending and real GDP is below potential GDP. (a) Illustrate this on an aggregate demand in ation diagram. (b) When real GDP falls, what happens to tax revenue, government spending, and the budget balance? (c) If a balanced budget amendment were in place, what would have to happen to government spending and/or taxes? Illustrate on the diagram. (d) Is it wise to allow the government to run a de cit during a recession and a surplus during an expansion?4. Which two ministries use up more of the provincial budget than all the others combined?