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