Asked by Allyssa Wilson on May 21, 2024
Verified
If the government increased defense spending by $1 million and laid off enough Justice Department employees to decrease the Department of Justice budget by $1 million,which of the following is the likely net effect?
A) An increase in the budget deficit and transfer payments
B) An increase in the budget deficit and net taxes
C) An increase in the budget deficit and government spending
D) No change in the budget deficit because there is no net change in government spending
E) No change in the budget deficit because neither defense spending nor the Department of Justice is included in government spending
Budget Deficit
The situation when government expenditures exceed its revenues within a specific period.
Defense Spending
Governmental expenditure on military and defense activities, including salaries for military personnel, equipment, research, and development.
Government Spending
The total expenditure incurred by a government on goods, services, and public projects, utilized for economic management and social welfare.
- Understand the impact of budget deficits and surpluses on economic health.
Verified Answer
Learning Objectives
- Understand the impact of budget deficits and surpluses on economic health.
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