The federal government started running a budget surplus in 1998.By 2002,the budget surplus had turned into a budget deficit.Why do you think the budget deficit returned in 2002?
A) There were spending increases to reduce the impacts of the Great Recession.
B) Entitlement programs were expanded in 2002, causing outlays to exceed revenues.
C) There was increased military spending in response to the 9/11 terrorist attacks.
D) There were large decreases in tax rates, which reduced total tax revenues.
E) Politicians were spending the surplus too quickly on projects that would benefit their home districts.
Correct Answer:
Verified
Q1: Due to _,government outlays have risen quickly
Q8: Expansionary fiscal policy occurs when the _
Q9: An example of expansionary fiscal policy is
A)
Q15: Mandatory outlays are different than discretionary outlays
Q18: Which of the following is considered mandatory
Q52: Between 2004 and 2014,real government outlays in
Q53: Transfer payments refer to funds that are
Q56: Assuming all of the following are in
Q58: Why do Social Security and Medicare pose
Q61: When the government decreases spending or increases
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents