Asked by Ruthie Greenberger on May 18, 2024
Verified
From the mid-1970s to the mid-1990s,the federal government ran a _____ and the state and local governments ran a ____.
A) deficit,deficit
B) deficit,surplus
C) surplus,surplus
D) surplus,deficit
Federal Government
The national government of the United States, composed of three branches: legislative, executive, and judicial, responsible for governing the country according to its Constitution.
State and Local Governments
Regional governmental bodies within a country that are responsible for the governance of their specific areas, handling regional laws and regulations.
Surplus
The situation in which the quantity of a good or service supplied exceeds the quantity demanded at the current price.
- Examine the interaction between governmental expenditure and taxation and its impact on economic dynamics.
Verified Answer
KH
Kenadee HolzendorfMay 21, 2024
Final Answer :
B
Explanation :
From the mid-1970s to the mid-1990s, the federal government often ran budget deficits due to various economic policies and spending programs, while state and local governments typically ran surpluses, partly because many are required by law to maintain balanced budgets.
Learning Objectives
- Examine the interaction between governmental expenditure and taxation and its impact on economic dynamics.