Chapter 14 MACROECON

the public debt is a

stock

The public debt arises from ______ of past _____

an accumulation; deficits

during 1998-2001, U.s federal government officially operated with

annual budget surplus

the public debt is measured _____ and conseequantly is a

at a point in time; stock

A government budge deficit occurs when

government spending exceed government revenues

the ____ public debt inclused all federal government debt, irrespective of who owns in

gross

the ______ public debt exclueds all government interagency borrowing

net

spending on entitlement such as Social Security, Medicare, and other government provided health care are ________ expenditures that currently account for _____ of all federal government spending

noncontrollable; more than

the government budget deficit is measured ____ and consequently is a ______

over time; flow

total value of all outstanding federal government securities at a point in time is

public debt

total value of all outstanding federal government securities

Public debt

a situation in which government spending exactly equals total government revenues is a

balanced budget

if government budget deficits in crowding out of investment and tereby reduce growth in the nation's _______, then the resulting debt can be a burden for ______ generations

capital stock ; future

An excess of government spending over total government revenues is a

deficit

if all macroeconomcs adjustments have occurred, real gdp is initially at its full-employment level, and the government's budget is balanced, then increasing government spending while keepings taxes unchanged will result in a government budget _____ and, int the long run, cause equilibrium real GDP to _______

deficit; remain unchanged

If the economy is initially in a recessionary-gap situation and the governments budget is balanced, then cutting taxes while keeping government spending unchanged will result in a government budget _____, and in the short run, cause equilbrium real GDP to _________

deficit; rise toward its full-employement level

why higher U.s federal budgets deficits that boost us public debt might prove burdensom for future us tax payers

foreign holders of the us public debt will receive transfer from future us tax payers

a higher public debt can be a burden if it results in more purchases of government bonds by __ households, businesses, and government, thereby resulting in a burdensome transfer from

foreign; this nation to foreign countries

A government budget surplus occurs when

government revenues exceed government spending

an excess of government revenues over government spending is a

surplus

in an open economy, a higher government budget deficit is often associated with a higher

trade deficit