1-What are the main categories of U.S. federal government spending?
2-What is the difference between a budget deficit, a balanced budget, and a budget surplus?
3-What are the main categories of U.S. federal government taxes?
4-Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in response to each of the situations below and sketch a diagram using aggregate demand and aggregate supply curves to illustrate your answer:
a. A recession.
b. A stock market collapse that hurts consumer and business confidence.
c. Extremely rapid growth of exports.
d. Rising inflation.
e. A rise in the natural rate of unemployment.
f. A rise in oil prices.