What factors created a budget surplus in the federal government in 1998? The real reason the budget went from a projected $360 billion deficit to a small surplus was higher tax rates passed by a Democratic Congress, and a booming economy presided over by President Bill Clinton .
What is a federal budget surplus?
A surplus occurs when the government collects more money than it spends . The last surplus for the federal government was in 2001. A balanced budget occurs when the amount the government spends equals the amount the government collects.
What determines a government budget surplus?
A budget surplus occurs when tax revenue is greater than government spending . With a budget surplus, the government can use the surplus revenue to pay off public sector debt.
Which of the following is true about the US federal government budget for the year 1998?
Which of the following is true about the US federal government budget for the year 1998? The federal government receipts were greater than federal government spending for the first time in more than 25 years.
When did the US have a budget surplus?
According to the Congressional Budget Office, the United States last had a budget surplus during fiscal year 2001 .
Federal budget deficits became progressively smaller during the 1990s and turned into a surplus by 1998.
Budget surplus. The amount by which revenues of the federal government exceed its expenditures in any year .
A primary budget surplus happens when interest payments on outstanding debt are not included in the government’s total expenditure. For example, a government with a budget deficit of $24 billion but paying $30 billion as interest on outstanding debt can be said to have a primary budget surplus of $6 billion .
What is a budget surplus and a budget deficit? A budget surplus is when extra money is left over in a budget after expenses are paid. A budget deficit occurs when the federal government spends more money that it collects in revenue .
Deflationary Effect
When government operates a budget surplus, it is removing money from circulation in the wider economy . With less money circulating, it can create a deflationary effect. Less money in the economy means that the money that is in circulation has to represent the number of goods and services produced.
if tax revenues equal outlays, the gov. has a balanced budget. the gov. has a budget surplus if tax revenue exceed outlays .
Which of the following would occur if the federal government decided to use a budget surplus to reduce the existing debt? Crowding in and private sector output would increase .
THE U.S. FEDERAL BUDGET
In the 40-year period from FY 1965 to FY 2005 , the Federal Government experienced a budget surplus in only five fiscal years. The government had a modest surplus of $3.2 billion in FY 1969.
The government has a budget surplus if: its total revenues are greater than its total expenditures .
1998-2001 are the only years that the U.S. federal government recorded surpluses.
Which of the following is a reason for this resurgence in federal government budget deficits? Tax revenue not keeping pace with growth in spending .
At 46 years old, he became the third-youngest president of the United States and the first president to be born in the Baby Boomer generation. Clinton presided over the longest period of peacetime economic expansion in American history.
A surplus federal budget in the short run: Dampens aggregate demand but boosts domestic saving .
Budget surplus: the positive budget balance when tax revenues exceed outlays. Budget deficit: the negative budget balance when outlays exceeds tax revenues.
