Download 4. G.R. 10.4 (Surpluses and Deficits)

Guided Reading 10.4
DEFICITS, SURPLUSES, AND THE NATIONAL DEBT
On your own paper, answer the following questions as you read Chapter 10, Section 4 (Pgs 272-278)
You do not have to write the question so long as you staple the questions to your answer sheet when finished.
Q 1. What is deficit spending?
2. Why are percentages used in the deficit chart? Btw, GDP =value of all stuff made in US in one year
3. How does the federal government borrow from others?
Q 4. Define federal debt.
5. Define balanced budget.
6. Why do most economists tend to disregard trust fund balances when calculating government debt?
Q 7. Per Capita means per person (know that for quiz). What was the U.S debt on a per capita basis in mid-2003?
8. Define GDP (what do the letters stand for and what does it mean).
9. Why doesn’t the gov’t make a plan to repay the debt by a specific date like people do with private debt?
10. Give an example of how the federal debt could impact the distribution of income within the economy.
11. What happens to the level of taxes when there is a larger federal debt?
12. According to the Crowding-out effect, what happens to interest rates for private borrowers when the gov’t
sells a lot of bonds?
Grading:
3pts = All 18
13. When was the first attempt to balance the budget and what was its nickname?
2pts = 9-17 answered
14. What is a “pay-as-you-go” provision?
1pt = 1-8 answered
15. What was the goal of the Omnibus Budget Reconciliation Act of 1993?
0pts = 0 answers
16. Define line-item veto and Spending Cap.
17. The budget surpluses of the late 90’s were predicted to last until 2010 <lol> why didn’t they?
18. What are entitlements?
Guided Reading 10.4
DEFICITS, SURPLUSES, AND THE NATIONAL DEBT
On your own paper, answer the following questions as you read Chapter 10, Section 4 (Pgs 272-278)
You do not have to write the question so long as you staple the questions to your answer sheet when finished.
Q 1. What is deficit spending?
2. Why are percentages used in the deficit chart? Btw, GDP =value of all stuff made in US in one year
3. How does the federal government borrow from others?
Q 4. Define federal debt.
5. Define balanced budget.
6. Why do most economists tend to disregard trust fund balances when calculating government debt?
Q 7. Per Capita means per person (know that for quiz). What was the U.S debt on a per capita basis in mid-2003?
8. Define GDP (what do the letters stand for and what does it mean).
9. Why doesn’t the gov’t make a plan to repay the debt by a specific date like people do with private debt?
10. Give an example of how the federal debt could impact the distribution of income within the economy.
11. What happens to the level of taxes when there is a larger federal debt?
12. According to the Crowding-out effect, what happens to interest rates for private borrowers when the gov’t
sells a lot of bonds?
Grading:
3pts = All 18
13. When was the first attempt to balance the budget and what was its nickname?
2pts = 9-17 answered
14. What is a “pay-as-you-go” provision?
1pt = 1-8 answered
15. What was the goal of the Omnibus Budget Reconciliation Act of 1993?
0pts = 0 answers
16. Define line-item veto and Spending Cap.
17. The budget surpluses of the late 90’s were predicted to last until 2010 <lol> why didn’t they?
18. What are entitlements?