Explain the differences between a federal budget deficit, a federal budget surplus, and a balanced federal budget
What will be an ideal response?
A federal budget deficit occurs when the federal government spends more than it receives in tax revenues in a given year. A federal budget surplus occurs when the federal government receives more in tax revenues than it spends in a given year. A balanced federal budget occurs when the federal government spends the same amount that it receives in tax revenues in a given year.
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Which of the following statements about the nominal and the real wage rates is correct?
A) The nominal wage rate equals the real wage rate divided by the CPI and then multiplied by 100. B) The nominal wage rate is measured in the dollars of a base year. C) The real wage rate is measured in current year dollars. D) The real wage rate indicates how many goods and services can be purchased with an hour's labor. E) The real wage rate equals the nominal wage rate multiplied by the CPI then divided by 100.
An increase in population shifts the production possibilities frontier inwards over time
Indicate whether the statement is true or false