The Federal Budget

The federal budget is the recorded projection of all the ___________ and __________ over the course of a 12 month period. Choose all that apply.

• expenditures

• revenues

• treaties

• laws

Which of the following best describes government revenue:

• Total income gained by government employees

• Total income gained by the government through taxes

• Total income gained by election revenue

• Total income gained by government spending

Which of the following best describes government expenditures?

• Amount of energy expended by the government annually.

• Government funding for foreign affairs.

• Money spent by the government.

• Government trade policies.

A government budget surplus exists when government _________ exceeds government ___________ in a fiscal year.

• revenue; expenditures (spending)

• expenditures (spending); revenue

A government budget deficit exists when _________ exceeds ________ in a fiscal year.

• revenue; expenditures (spending)

• expenditures (spending); revenue

When government revenue equals government expenditures (spending) it means there is a ________   __________.

• budget surplus

• budget deficit

• balanced budget

True or False:  Between 1970 and 2017, the federal government has experienced more budget surpluses than budget deficits.

• True

• False

The national debt is the accumulation of all ______  ______ over time.

• budget surpluses

• budget deficits

• balanced budgets

Because the U.S. has to allocate money to pay down the national debt, we automatically move toward a ______  ______ every year.

• budget surplus

• budget deficit

• balanced budget

True or False: Anytime the economy moves towards a cyclical deficit or cyclical surplus, the federal government takes direct action to make economic conditions change.

• True

• False