Asked by Taryn Unhola on Jul 04, 2024
Verified
Statement I: To cut a federal budget deficit,we must raise taxes,cut government spending,or experience rapid economic growth.
Statement II: It would be a lot easier to cut Social Security benefits than to cut most other federal spending programs.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Federal Budget Deficit
The amount by which a government's expenditures exceed its tax revenues over a specific fiscal period, leading to borrowing or debt accumulation.
Economic Growth
Growth in the inflation-corrected value of goods and services that an economy outputs over time.
Social Security
The U.S. social insurance program financed by a federal payroll tax that provides disability, retirement, and death benefits.
- Recognize the historical context and effects of specific fiscal policies and tax reforms on the economy.
- Interpret the significance and consequences of federal budget surpluses and deficits on the national economy.
Verified Answer
UW
Urvashi WaliaJul 05, 2024
Final Answer :
A
Explanation :
While statement I is generally true, statement II is not necessarily true. Cutting Social Security benefits may be politically difficult due to the large number of people who rely on them, and there may be other federal spending programs that are easier to cut. Therefore, statement II is false.
Learning Objectives
- Recognize the historical context and effects of specific fiscal policies and tax reforms on the economy.
- Interpret the significance and consequences of federal budget surpluses and deficits on the national economy.