The Federal Government Started Running a Budget Surplus in 1998

question 111

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 9/11 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:

Eliciting Devices

Activities and objects used to draw out individuals and encourage them to recall and share information.

Underground Sites

Locations or constructions situated below the Earth's surface, utilized for various purposes including habitation, storage, defense, or religious practices.

Ethnocentric Perspective

Viewing the world and making judgments about other cultures based on the standards and values of one's own culture, often leading to cultural bias.

Holistic Perspective

An approach that considers a whole system, including all of its components and their interactions, rather than focusing on its parts separately.