The cyclically adjusted budget deficit answer adjusts

This preview shows page 5 - 7 out of 17 pages.

QuestionThe cyclically adjusted budget deficit:Answeradjusts the deficit for inflation.estimates what the deficit would be if the economy were operating at the natural rate of output.accounts for assets as well as liabilities.measures the impact of fiscal policy on the lifetime incomes of individuals of different ages.
Add Question HereMultiple Choice1 pointsQuestionAn estimate of what government spending and tax revenue would be if the economy were operating at its natural rateof output and employment is called the ______ budget.
Add Question HerePool Canvasfolder (19)/CourseComp...5 of 1712/8/2012 11:46 uni0645
Multiple Choice1 pointsQuestionCyclically adjusted budgets are useful because they:
Add Question HereMultiple Choice1 pointsQuestionAssume that a government has a balanced budget when the economy is at full employment. If the economy thenenters a recession, with no change in tax or spending laws, then the budget of the government is most likely to:
Add Question HereMultiple Choice1 pointsQuestionEach of the following changes would allow the measured budget deficit to provide a truer picture of fiscal policy except:Answercorrecting for the effects of inflation.offsetting changes in government liabilities with changes in government assets.excluding some liabilities altogether.correcting for the effects of the business cycle.
Add Question HereMultiple Choice1 pointsQuestionMeasuring the size of government debt is complicated by all of the following factors except:
Add Question HereMultiple Choice1 pointsQuestionAccording to the traditional view of government debt, if taxes are cut without cutting government spending, then thelong-run effects will be ______ steady-state capital and ______ consumption.
Add Question HereMultiple Choice1 points

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture