What happens to the following variables during an expansion? a.  government budget deficits (surplus)

Q: What is a  problem of a government running a large Debt (e.g., debt/GDP ratio of over 100%)?…

A: Government of different countries borrows money from the public, central bank and from foreign…

Q: Some government taxes and transfers automatically temper recessions and expansions without any…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Analise what happens with the price in case of the deficit and overproduction.

A: In economics terms, a deficit happens when expenses surpass incomes, liabilities surpass assets or…

Q: Find the value of the primary deficit  if the fiscal deficit is 186 and the interest payment by the…

A: The variable that captures the borrowing requirements of the government other than the obligation…

Q: larger government fiscal deficit cause a larger international trade deficit

A: ‘Fiscal deficit’ refers to the difference between total income & expenditure of the…

Q: 1. The economy starts out with a balanced Federal budget. If the government opts to implement…

A: Fiscal policy refers to the policy of the government to control the money supply in the economy.…

Q: The budget deficit tends to decline during periods of recession and to increase during periods of…

A: An economy is said to be in recession if there is a decrease in economic activity for more than two…

Q: If the government runs a budget deficit, it means that there is an excess of government spending…

A: The government is a sector of the economy. It works for the welfare of the people.  It collects…

Q: An increase in the budget deficit is the result of:   A) Expansionary monetary policy; B)…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Suppose the economy goes into a recession, and there are no changes the Federal Government’s tax…

A: A recession is a period of economic slowdown. Recession is characterized by a decrease in…

Q: A budget deficit is defined as: Select the correct answer and explain why its correct a shortfall…

A: Budget refers to a legal document prepared by the government or a political party which consists of…

Q: Calculate revenue deficit if Fiscal deficit is $10,000  Capital expenditure is $5,000 and capital…

A: The data presented in the question above is:- Fiscal deficit = $10,000 Capital expenditure = $5000…

Q: Social security in the U.S. is funded by government expenditures current and future taxes the…

A: Note:- Since we can answer only one question at a time, we'll answer the first one. Please repost…

Q: An increase in the budget deficit is the result of:

A: Monetary policies are done by Central Bank and fiscal policies are done by Government of a country.

Q: Reasons to be concerned with printing money to finance the deficit. Reasons to be concerned with…

A: Printing more money has no effect on economic activity; it just increases the amount of cash in…

Q: Which of the following policy combinations would cause a rise in the government budget deficit?…

A: Fiscal measures is the utilization of government spending and tax collection to impact the economy.…

Q: Based on this model, the budget deficit leads to in the level of investment and in the interest…

A: In the market for loanable funds, the r(interest rate) is found out by the dd(demand) and ss(supply)…

Q: explain why the government deficit rises as the economy contracts and why the government deficit…

A: The government budget refers to a fiscal or financial statement that includes all the receipts (or…

Q: 6. After a tax increase, households often reduce spending and save more. This can result in: a. An…

A: In an economy, any change in tax rate will have a significant impact on the economic growth and…

Q: Conventional ways to reduce the deficit and the related problems

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…

Q: Which of the following, regarding debt and growth, is false?    a. If there is no (nominal) GDP…

A: a-Central banks can support development by cutting loan costs, which (in principle) prompts simpler…

Q: Which of the following is not true of deficits?   Supply-side policies contribute to budget…

A: Answer: Deficits: deficit refers to the difference between total spending and total revenue of the…

Q: Revenue deficit can be managed through borrowing or disinvestment but fiscal deficit can be managed…

A: When the government expenditure exceeds the receipts during a fiscal year it is termed as revenue…

Q: Other things equal, an increase in defense spending will increase the budget deficit. a. True O b.…

A: The defense spending would be one of the most important expenditures of the government. The…

Q: Multiple Choice Question....   Which statement is a major consequence of high government budget…

A: Budget deficit refers to a situation when the expenditure of the government exceeds its revenue.

Q: One objection to deficit spending is that it increases the demand for loanable funds thereby putting…

A: Demand curve for the loanable fund shows the level of demand for loan at different interest rate.…

Q: Government consumption expenditures equal

A: government consumption expenditure  includes all  current expenditures of the government for…

Q: If a government increases its budget deficit, which statement would best describe the consequences?…

A: In an economy, government budget is essential to analyze because it has significant impact on the…

Q: The effects of a budget deficit can be offset by: a. External financing b. Crowding out c. A…

A: In June 2012, economist Laura D'Andrea Tyson wrote: By itself, an increase in the deficit, either in…

Q: Which statement best explains why budget deficits may bring on a recession?   a) Large deficits…

A: A budget deficit arises when spending surpasses receipts; it might reflect a country's financial…

Q: Which of the following is a correct measure of the primary deficit? (a) Fiscal deficit - Revenue…

A: Deficit refers to a situation when the expenditures of the government exceed the revenue of the…

Q: Which of the following statements about a country's budget is not true? Budget deficit occurs when…

A: Budget deficit occurs when the government spending exceeds the taxes collected The first statement…

Q: 58. Consider the long-run theory of investment, saving, and growth. Suppose the government has a…

A: 58. Consider the long-run theory of investment, saving, and growth. Suppose the government has a…

Q: Summarize the effects of a budget deficit by filling in the following table. Real Interest Rate Real…

A: Answer: Budget deficit: budget deficit refers to the excess of government expenditure over its…

Q: Consider three different closed economies with the following national income statistics. Country A…

A: Budget deficit (BD) for country A can be calculated as follows. Budget deficit is $20 billion.…

Q: When the exports are less than imports, then there will be ___________. a. Budget surplus b.…

A: Exports represent goods and services produced in one country, sold or provided to residents in a…

Q: Lilliput is a country that has closed borders and does not import or export any goods or services;…

A: A Balanced Budget is defined as a term which is used for government budgets. It which occurs when…

Q: The government budget is in DEFICIT when     T - G - Transfers (TR) - Interest on the Debt (INT)…

A: A government deficit is the amount of money in the budget by which the spending done by the…

Q: In an economy such as Canada's, absorbs some of the available for investment, driving the interest…

A: The policies related to the economy of Canada have been discussed.

Q: When an annual deficit occurs, how is it financed?  1. The federal government buys US Treasury…

A: Government runs a deficit when government spending is greater than government taxes.  In order to…