Which of the following statements best explains why the red bar goes up when the blue goes up? Equivalent spending and taxing does not allow for debt reduction. Higher spending than taxing results in a deficit, which contributes to more debt.
Which of the following statements best explains why the red bar goes up when the Blue goes up equivalent spending and taxing does not allow for debt reduction higher spending than taxing results in a deficit which contributes to more debt higher taxing than spending?
Which of the following statements best explains why the red bar goes up when the blue goes up? Equivalent spending and taxing does not allow for debt reduction. Higher spending than taxing results in a deficit, which contributes to more debt.
What may happen if the line artificial price were above the intersection of the supply and demand lines?
What may happen if the line “Artificial Price” were above the intersection of the supply and demand lines? Surplus .
Which of these is an example of the line marked artificial price?
An example of the line marked “Artificial Price” is Farm subsidies .
What are the three largest categories of federal government spending?
Mandatory and Discretionary Spending
The U.S. Treasury divides all federal spending into three groups: mandatory spending, discretionary spending and interest on debt.
Are federal purchases higher today as a percentage of GDP than they were in 1960?
Federal investment has gradually declined as a proportion of discretionary spending, from roughly 50 percent in the 1960s to about 40 percent today . In addition, discretionary spending as a whole has fallen as a share of total federal spending since the 1960s.
How are start-up costs related to natural monopolies? High start -up costs prevent others from offering the same service in a natural monopoly . ... Natural monopolies are held by companies that cannot pay for start-up costs. The government offers companies money for start-up costs to prevent natural monopolies.
What are the four main categories of US Federal government spending?
The four main areas of federal spending are national defense, Social Security, healthcare, and interest payments , which together account for about 70% of all federal spending. When a government spends more than it collects in taxes, it is said to have a budget deficit.
What is the second largest category of public spending by the federal government?
Expenditures for natural resources and the environment constitute the second largest category of federal spending. For much of the late 1900s, national defense comprised the largest category of spending. The public sector is that part of the economy that is made up of individuals and privately-owned businesses.
What are the five largest federal expenses?
What are the five largest federal expenses? health and human services, department of defense, treasury department, department of agriculture, and department of education .
What was the GDP in 1960?
For example, in 1960, U.S. GDP was $543 billion and global GDP was $1.367 trillion (based on current U.S. Dollars).
In which decade did the United States see the largest increase in government spending?
Spending by state and local government increased from about 10% of GDP in the early 1960s to 14–16% by the mid-1970s . It has remained at roughly that level since.
What has been the impact of government spending more on the economy?
In a recession, consumers may reduce spending leading to an increase in private sector saving. ... The increased government spending may create a multiplier effect. If the government spending causes the unemployed to gain jobs then they will have more income to spend leading to a further increase in aggregate demand.
What are examples of start up costs?
What are examples of startup costs? Examples of startup costs include licensing and permits, insurance, office supplies, payroll, marketing costs, research expenses, and utilities .
What startup costs are deductible?
The IRS allows you to deduct $5,000 in business startup costs and $5,000 in organizational costs, but only if your total startup costs are $50,000 or less. If your startup costs in either area exceed $50,000, the amount of your allowable deduction will be reduced by the overage.
How far back can you claim startup costs?
Depreciation of a business asset starts the date that asset is placed “in service”, and *NOT* on the date you purchased it. It is not uncommon for some businesses to have start up expenses dating back 3 years (give or take) before the business is actually open for business.
