Chapter 14: Q. 1 (page 319)
In 2019, government spending istrillion, and taxes collected are trillion. What is the federal government deficit in that year?
In 2015, the federal government's budget deficit is .
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Suppose that the Office of Management and Budget provides the estimates of federal budget receipts, federal budget spending, and GDP shown below, all expressed in billions of dollars. Calculate the implied estimates of the federal budget deficit as a percentage of GDP for each year.
Explain how federal government budget deficits occur and define the public debt.
Under what circumstance would the transfer of U.S. taxpayers' funds to holders of U.S. debt residing in Japan and China constitute a "burden" on future generations of U.S. taxpayers? Explain briefly.
What is the relationship between the gross public debt and the net public debt?
In each of the past few years, the federal government has regularly borrowed funds to pay for at least one-third of expenditures that tax revenues were insufficient to cover. More thanpercent
of all federal expenditures now go for entitlement spending. What does this fact imply about how the government is paying for most of its discretionary expenditures?
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