US Federal Budget and Economic Policies

In 2016, the U.S. government had to borrow an additional amount to cover its spending. What was the estimated value of this additional borrowing?

What is the primary difference between the two main political parties regarding balancing the budget?

Which type of spending program would be targeted by Congress if they were to balance the budget solely through discretionary spending?

What is the common way governments raise revenue to operate?

What is a potential drawback associated with raising revenue through taxation?

What is the key difference between Keynesian and supply-side economic perspectives on tax policy?

In a progressive tax system, what happens to the effective tax rate as the taxpayer's income increases?

What is the name of the U.S. legislation that established the Federal Reserve System?

What are the three primary goals of the Federal Reserve?

What is the primary function of the Federal Reserve Board?

What is the main purpose of 'sin taxes'?

What is a characteristic of a regressive tax system?

What is an example of a regressive tax paid by most U.S. workers?

What is a financial panic?

What was the primary reason for the establishment of the Federal Reserve System?

What is the primary argument made by proponents of laissez-faire economics?

Which of the following is NOT a characteristic of laissez-faire economics?

How do policymakers strive to protect long-term priorities from short-term fluctuations?

What event directly challenged the validity of laissez-faire economic principles?

Why did proponents of laissez-faire economics believe that economic recessions would eventually correct themselves?

The text states that policymakers face challenges as a result of past decisions. What is the likely reason for this challenge?

What is the main purpose of mentioning the $6.55 trillion federal budget for 2020?

How long is the term for a governor on the Federal Reserve Board?

What is one of the primary roles of the chair of the Federal Reserve?

Which of the following individuals served as chair of the Federal Reserve?

What dual mandate does the Federal Reserve aim to achieve?

Who succeeded Ben Bernanke as chair of the Federal Reserve?

Which event did Alan Greenspan respond to by lowering interest rates in 1987?

What can be a consequence of the Fed's efforts to meet its dual mandate?

Who is the current chair of the Federal Reserve as of 2021?

What major economic issue did Paul Volcker tackle when he became chair?

How many regional Federal Reserve Banks are there?

Why does Keynesian economics suggest increasing government spending during periods of high unemployment?

What was a key criticism of Keynesian economics that emerged in the 1970s?

What is the main argument of supply-side economics?

What is the difference between mandatory and discretionary spending in the federal budget?

Which of the following is NOT an example of mandatory spending?

What is the main argument for maintaining a minimal level of aggregate demand, as supported by Keynesians?

What are the two largest components of the federal budget?

What is the primary reason for the difficulty in reforming entitlement programs such as Social Security?

What is the difference between a recession and a depression?

What role did Keynesianism play in U.S. fiscal policy during the period from the 1930s to the 1970s?

Supply-siders argue that reducing taxes and regulations will spur economic growth. What is the main reason for this argument?

What is a deficit in the federal budget?

Why does mandatory spending often increase during periods of economic slowdown?

What is the difference between fiscal policy and monetary policy?

What is the main argument against supply-side economics?

What is the main argument in favor of Keynesian economics?