The graph on the left.
The graph on the right.
Both A and B.
Neither A nor B.
New growth theory.
$962 billion; 927 billion
$2,142 billion; $2,473 billion
$1,329 billion; $794 billion
A smaller fraction of GDP; a larger fraction of GDP
A part of discretionary spending.
A part of mandatory spending.
A part of automatic spending.
Entitlements and mandatory spending.
The spending on those programs has been matched by taxes that raise the revenue necessary to run them.
They are partly based on the income of the recipient.
The government has tested the program and knows it will accomplish its goals.
The government only carries out the spending if its revenue is sufficient; in other words, it is not allowed to borrow money to fund these programs
Almost the entire 17.5%.
When it runs a budget deficit.
When it runs a budget surplus.
When it runs a budget balance.
None of the above. Such purchase is impossible.
During an expansion.
During a recession.
During a boom.
At any moment throughout the business cycle.
The principle of opportunity cost.
The real-nominal principle.
The principle of diminishing returns.
The principle of voluntary exchange.
The marginal principle.
The negative impacts of a budget deficit on the economy as a whole.
The role played by AD in determining the level of AS.
The role taxes play in the supply of output in the economy.
The impact of government spending on consumption.
Reduce expenditures and leave taxes constant in order to stimulate aggregate demand.
Increase government purchases or decrease taxes in order to increase aggregate demand.
Decrease government purchases or increase taxes in order to decrease aggregate supply.
Change spending and taxation but not aggregate demand or aggregate supply.
Discretionary fiscal policy changes.
Autonomous fiscal expenditures.
During the Great Depression.
During the Kennedy administration.
During the Vietnam War Era.
During the Reagan administration.
Slowing the economy down.
Increasing the supply of output.
Increasing the demand for goods and services.
Helping households go through a boom period of economic activity.
Has no effect on
May enhance or limit