Fiscal Policy: Spending Answers

Revenue and expenditures are sitting on a balance at the same level.

Which statement best describes the likely effects of an expansionary fiscal policy?

A pie chart titled Federal Government Spending in 2010 is shown. Education and health and human services has the largest piece, and veteran apostrophe s affairs has the smallest piece.

Revenue and expenditures are sitting on a balance. Expenditures are lower than revenue.

A flow chart shows an aspect of fiscal policy. Money goes from the government, to household, and to firms.

"Meeting the spending targets in this budget meant some very difficult choices."President Barack Obama,2012 Budget Message of the President

When a government creates a budget, it is seeking a way to

Spending that is required by law is known as

When revenues are higher than expenditures in a budget, that budget

A graph titled Total U S Government Spending as Percentage of G D P from 1990-2012 has year on the x-axis and percentage of G D P on the y-axis, from 15 to 30 percent in increments of 5. The percentage of G D P is lowest at 18 percent in 2001 and highest at 25 percent in 2009.