21) The above table gives the government outlays and tax revenues from 2008 through 2012 for two countries. In 2011 country A had a ________ and country B had a ________.
A) budget deficit; budget deficit
B) balanced budge; budget surplus
C) balanced budget; budget deficit
D) budget surplus; budget surplus
E) budget surplus; balanced budget
22) The above table gives the government outlays and tax revenues from 2008 through 2012 for two countries. In 2010 country A had a ________ and country B had a ________.
A) budget deficit; budget deficit
B) budget deficit; budget surplus
C) balanced budget; budget deficit
D) budget surplus; budget surplus
E) budget surplus; budget deficit
23) The national debt is the amount
A) by which government tax revenue exceed outlays in a given year.
B) of debt outstanding that arises from past budget deficits.
C) by which government outlays exceed tax revenue in a given year.
D) of government outlays summed over time.
E) of all future entitlement spending.
24) The national debt is
A) tax revenue minus government outlays.
B) government outlays minus tax revenue.
C) the amount borrowed by the government to finance past budget deficits.
D) the amount lent by the government of past budget surpluses.
E) the excess of this year's budget surplus minus this year's budget deficit.
25) When the government's outlays equal its tax revenue, the budget
A) has a deficit and the national debt is increasing.
B) is balanced and the national debt is not changing.
C) has a surplus and the national debt is increasing.
D) has a deficit and the national debt is decreasing.
E) has a surplus and the national debt is decreasing.
26) When the government's outlays exceed its tax revenues, the national debt
A) shrinks thanks to the budget surplus.
B) grows to finance the budget deficit.
C) shrinks thanks to the budget deficit.
D) grows to finance the budget surplus.
E) does not change because it has nothing to do with government outlays and tax revenue.
27) The national debt can only be reduced if
A) the federal budget is in deficit.
B) the federal budget is in surplus.
C) there are no tax multiplier effects.
D) the economy has a deflationary gap.
E) the economy has an inflationary gap.
28) If tax revenues are $230 billion and the government's outlays are $235 billion, then the budget
A) deficit is $5 billion and government debt will remain the same.
B) surplus is $5 billion and government debt will increase by $5 billion.
C) deficit is $5 billion and government debt will increase by $5 billion.
D) deficit is $5 billion and government debt will decrease by $5 billion.
E) surplus is $230 billion and the budget deficit is $235 billion.
29) What two parts of the government determine the federal budget?
A) the Federal Reserve and the FOMC
B) the President and the Federal Reserve
C) the Congress and the Federal Reserve
D) the Congress and the President
E) the U.S. Treasury and the Federal Reserve
30) The federal budget is decided upon by the
A) President of the United States and the Federal Reserve system.
B) President of the United States and the United States Treasury.
C) President of the United States and the United States Congress.
D) United States Congress and the Federal Reserve System.
E) the United States Treasury alone.
