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Chapter 14: Q. 1 (page 319)
In 2019, government spending istrillion, and taxes collected are trillion. What is the federal government deficit in that year?
In 2015, the federal government's budget deficit is .
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Refer back to Problem . If the politician defines "the rich" as people with annual taxable incomes exceeding million per year, what is another difficulty with the politician's reasoning, given that "the rich" rarely earn a combined taxable income exceeding trillion, yet the federal deficit has regularly exceeded trillion in recent years?
To which key set of expenditures do you suppose that "other things being equal" definitely applies in the government's projections displayed in panel (b) of Figure ? (Hint: Which types of expenses does the government often refer to as "non controllable"?)
Consider Figure 14-2. The years immediately after 2008 stand out as having the highest values in the figure. The main reason is that the dollar magnitudes of the federal government's deficits were very large during these years. How might the fact that a significant economic contraction occurred during these years provide another explanation for why the percentages for these years were so high?
It may be argued that the effects of a higher public debt are the same as the effects of a higher deficit. Why?
How might the fact that many people who vote in national elections pay very low or even no income taxes affect the capability of the political process to reduce government budget deficits?
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