Discuss the federal budget history of the United States since 1970. Make sure to note specifically the budget position of the United States during the last of the 1990s and compare it to the situation in 2014
What will be an ideal response?
Starting in the early 1970s, the federal budget went into deficit and remained there until 1997. Then from 1997 to 2001, the government had a budget surplus, that changed back to a deficit in 2002. Some of the budget deficits, particularly those in the 1980s and in recent years, were quite large. In the late 1990s the U.S. budget surplus was, at times, large—over $200 billion a year. In 2014, the budget deficit was very large, over $600 billion.
You might also like to view...
Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses?
A) The supply increases so that the supply curve shifts rightward. B) The supply decreases so that the supply curve shifts leftward. C) The quantity supplied increases, but there is no shift in the supply curve. D) The quantity supplied decreases, but there is no shift in the supply curve. E) The quantity supplied decreases, and the supply curve shifts leftward.
If average Americans start to pay off the huge credit card debt they now hold, then
A) a shift in the supply of loanable funds will cause interest rates to rise. B) a shift in the supply of loanable funds will cause interest rates to fall. C) a shift in the demand for loanable funds will cause interest rates to rise. D) a shift in the demand for loanable funds will cause interest rates to fall. E) there will be an excess demand for loanable funds.