Fiscal Policy: Spending Answers

What does deficit spending require a government to do?

A diagram shows that taxes go into the government, which then go into spending.

A pie chart titled Federal Government Spending in 2010 is shown. Education and health and human services has the largest piece, and veteran apostrophe s affairs has the smallest piece.

When a government creates a budget, it is seeking a way to

Revenue and expenditures are sitting on a balance. Expenditures are lower than revenue.

A graph titled Total U S Government Spending as Percentage of G D P from 1990-2012 has year on the x-axis and percentage of G D P on the y-axis, from 15 to 30 percent in increments of 5. The percentage of G D P is lowest at 18 percent in 2001 and highest at 25 percent in 2009.

When revenues are higher than expenditures in a budget, that budget

A plan for spending money that balances income with spending and shows how money will be spent is

A graph shows the Total Public Debt of the U S Government from 1993 to 2013 with Year on the x-axis and Total public debt in trillions of U S dollars on the y-axis, from 0 to 20 in increments of 5. The debt stays constant from 1993 to 2001 and then steadily increases.

When governments inject money into the economy, which of the following are their goals? Check all that apply.reducing unemploymentimproving economic stabilityencouraging competitionlaying off striking workersimproving production