economics 5.1

If a country has only been around for 2 years, spends $1,000 the first year, $2,000 the second, and only generates $500 in tax revenue the second year, what is its national debt?

$2,500

The national debt is the accumulation of ______________________

budget deficits

Inflation is caused by one of two things: consumers bidding up the price of stuff, also known as ________________, or producers raising prices and producing less, otherwise known as______________________

1. demand pull inflation 2. cost push inflation

What was the only year in U.S. history that the United States had no debt?

1835

In what year was the Federal Reserve created?

1913

In what year was the government's ability to tax income signed into law?

1913

What is the meaning of a deficit?

A deficit is the difference between what the government spends and what it takes in.

What key factors in the 1960s and 1970s led to a large economic downturn?

Military and Social Program spending

What U.S. President created the Federal Reserve system?

Woodrow Wilson