government and fiscal policy

What does a budget surplus indicate?

• Revenues are smaller than expenditure

• Revenues are equal to expenditure

• Expenditures are not reflected

• Revenues are larger than expenditure

Who proposes the budget in the budgeting process?

• The Bicameral Meeting

• The House of Representatives

• The President

• The Senate

What are the components of government expenditures?

• Only Capital Outlays

• Only Current Operations

• Both Capital Outlays and Current Operations

• None of the above

What are tax revenues primarily based on?

• Taxes on goods and services

• Taxes on international trade

• Other taxes

• Taxes on income and profits

What is the main purpose of Expansionary Fiscal Policy?

• To decrease GDP

• To increase government spending and consumption

• To reduce government spending

• To limit government outputs

When does a budget deficit occur?

• When revenues are smaller than expenditure resulting in borrowing

• When expenditures are not reflected

• When revenues are equal to expenditure

• When revenues are larger than expenditure

Who scrutinizes the proposed budget separately in the budgeting process?

• The President

• The Senate

• The House of Representatives

• The Bicameral Meeting

What are non-tax revenues based on?

• Government collections or earnings from activities other than taxes

• Taxes on goods and services

• Taxes on international trade

• Taxes on income and profits

What is the outcome of the budgeting process?

• The President's Proposal

• Bicameral Meeting

• General Appropriations Act

• General Appropriations Bill

What is the main purpose of Contractionary Fiscal Policy?

• To increase GDP

• To limit government consumption and spending

• To promote economic growth

• To raise taxes