Choose the correct choice from the following: 1·The national debt is equal to: A
ID: 1108830 • Letter: C
Question
Choose the correct choice from the following: 1·The national debt is equal to: A) public debt not held by foreignens B) all prior business debt C)The sum of all prior years' deficits minus surpluses D) all prior household deficits and surpluses. E) consumer debt in the nation. 2. The concept of the cyclical deficit means that budget deficits a) naturally rise and fall over the course of the business cycle b) rise in the winter and fall in the summer c) are followed by a surplus in the subsequent year d) typically turn to surpluses within five years e) always make the business cycle worse 3. In 2012, Congress debated whether to extend the temporary payroll tax cut for another year because of lingering economic weakness following the Great Recession. This policy would be an example of a) An automatic stabilizer b) Monetary policy c) Discretionary fiscal policy d) Open market operations c stabilizers consist of A government taxing and spending programs that trigger appropriate increases or decreases in the amount of aggregate demand based on the state of health of the economy without legislative action. B. government taxing and spending programs that automatically increase aggregate demand during inflationary times and decrease demand during recessions C. government taxing and spending programs that do not require a referendum by the general electorate. D. government taxing and spending programs that trigger appropriate changes in the amount of aggregate demand based on White House forecasts of the state of health of the economy E. government taxing and spending programs that trigger appropriate changes in the amount of aggregate demand based on the party in control of Congres 5. Discretionary fiscal policy results from a Congress and the President taking explicit legislative action to change government spending or taxes b fiscal policy conducted discretely as to not attract undue attention. c. policy that takes effect automatically when an economy slides into a recession d policy done at the sole discretion of Congress and cannot be vetoed by the president. e policy done at the discretion of the state govermors. 6. Janetwill receive n 5% pay raise this year If the rate of inflation averages 3% this year then A) Janet's purchasing power is falling B) it is impossible to tell what is happening to Janet's purchasing power without farther information C) Janet's purchasing power is rising D) Janet's parchasing power is unaffected by either inflation or the pay raise E) Janet's purchasung power·s rising because inflation has no effect on purchasing powerExplanation / Answer
1) The asnwer is C -) the sum of all prior year deficits minus surpluses.
because national debt is the sum of all perviously annual federal deficits. or it is amount of money that federal government owes due to deficit spending.
2) The asnwer is A -) naturally rise and fall over the course of the business cycle.
because cyclical deficit is the related to business cycle.and business cycle is defines as the period of time that take an economy to move from expansion to contraction and then expand it again.
3) The asnwer is C-) discretionary fiscal policy.
4) The asnwer is A -) government taxing and spending programs that triggers appropiate increase or decrease in the amount aggregate demand based on the state of health of economy without legislative actions.
because, an automatic stablizer are those programs set by government to process automatically when there is a excess of demand or less supply or when the economoy is booming at undetermined rate, to cool down the economy and in the time of recession, to increase the aggregate demand in the economy without the intervention of government.