Answers IL-EconomicsFiscal Policy: Spending

Fiscal Policy: Spending Answers

5 verified answers

What is the purpose of the president’s statement?

to show how changes in fiscal policy can affect the economy

to show the size of the deficit relative to GDP

to show how large the national debt was when he took office

to show how he plans to reduce the national debt

What does it mean to measure a government's deficit "relative to the size of the economy"?

to compare the size of the deficit to productivity

to compare the size of the deficit to the unemployment rate

to measure the deficit as a percentage of the economy or GDP

to measure the deficit as a percentage of tax revenues

What does it mean to make "difficult choices" when creating a federal budget?

deciding how to keep interest rates on the national debt low

deciding which country to borrow from to finance spending

deciding how much to lend and how much to tax

deciding what will be funded and what will be cut

In this statement, which type of spending is President Obama referring to?

mandatory

discretionary

interest

tax

Which aspects of economic growth is the president addressing in this passage? Select all that apply.

ways to inject capital into the economy

ways to improve fiscal policy

ways to encourage increased productivity

ways to decrease unemployment

ways to create a balanced budget

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