The Federal Government Started Running a Budget Surplus in 1998

question 167

Multiple Choice

The federal government started running a budget surplus in 1998.By 2002,the budget surplus had turned into a budget deficit.Why do you think the budget deficit returned in 2002?

• A) There were spending increases to reduce the impacts of the Great Recession.
• B) Entitlement programs were expanded in 2002,causing outlays to exceed revenues.
• C) There was increased military spending in response to the September 11,2001,terrorist attacks.
• D) There were large decreases in tax rates,which reduced total tax revenues.
• E) Politicians were spending the surplus too quickly on projects that would benefit their home districts.

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Definitions:

Permit System

A regulatory process requiring individuals or businesses to obtain authorization before engaging in certain activities or operations.

Ocean Waters

The vast bodies of saltwater that cover approximately 71% of the Earth's surface, comprising the five major oceans.

Civil Penalties

Financial penalties imposed by governmental agencies as punishment for violations of legal requirements or regulations.

Hazardous Waste Regulations

Rules established by environmental agencies that govern the handling, storage, treatment, and disposal of wastes that pose substantial or potential threats to public health or the environment.