Fiscal Policy

Question 1

Answer this question before making any changes to spending percentages.What was the budget deficit in 2012?

Revolt · Accepted Answer

A: $1.09.0 trillion

Question 2

Answer this question before making any changes to spending percentages.Before you make your budgetary changes, how does the new deficit compare to the 2012 budget deficit?

Revolt · Accepted Answer

D: It is larger.

Question 3

Answer this question before making any changes to spending percentages.According to the 2012 budget, which two functions received the most spending?international affairsnational defensetransportationSocial Securityincome security

Revolt · Accepted Answer

B: national defense; D: Social Security

Question 4

Answer this question before making any changes to spending percentages.According to the 2012 budget, which two functions received the least spending? international affairsnational defensetransportationSocial Securityincome security

Revolt · Accepted Answer

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Question 5

Now, begin making changes. Remember to meet all of the president’s promises.What were the three largest cuts you made, and why did you choose these three areas?Explain your answer in at least three complete sentences.

Revolt · Accepted Answer

Balancing the federal budget is difficult because a large portion of government spending is mandatory, such as Social Security and Medicare, which cannot be easily changed or cut. Only a small percentage of the budget is discretionary spending, which is where Congress has the most flexibility. Additionally, raising taxes or cutting popular public programs is often politically unpopular, making it hard for the president and Congress to reach an agreement.

Question 6

Which factors did you include in your answer? Check all that apply.

Revolt · Accepted Answer

I chose to make cuts to income security, education, and health spending. I needed to make cuts to programs that were receiving the largest amounts of federal funding. These cuts were necessary to meet the president's budgetary promises.

Question 7

Which factors did you include in your answer? Check all that apply.

Revolt · Accepted Answer

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Fiscal Policy Answers

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