Differentiate between "off-budget" deficit and the "on-budget" deficit
Social Security expenditures and the payroll tax receipts that finance them are treated as off-budget items. Because Social Security benefits are financed by an earmarked revenue source?the payroll tax?Social Security and a few minor items have traditionally been segregated in the federal fiscal accounts. Most other expenditures and receipts are classified as on-budget.
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If demand and supply both decrease:
A) both price and quantity will be less. B) both price and quantity will go up. C) price will fall but quantity will go up. D) quantity will go down but the effect on price is indeterminate.
If the short-run aggregate supply increases by less than the long-run aggregate supply, then, at the short-run equilibrium,
A) GDP will be above potential GDP. B) aggregate demand will increase. C) GDP will be below potential GDP. D) GDP will be equal to potential GDP.