Fiscal Policy: Taxes Answers

Which of the following statements most accurately describes the federal government and its employees?

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

A graph shows the U S Government and Expenditures from 1980 to 2010. The money spent and money received generally follow the same trend, but around 2008, the amount of money spent increased and money received decreased.

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.

"Meeting the spending targets in this budget meant some very difficult choices."President Barack Obama,2012 Budget Message of the President

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