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Overall demand decreases reducing the incentive for producers to increase production

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Danika Abbott

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3y ago

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What best describes the economic effect that results from the government having a budget-surplus?

Overall demand decreases, reducing the incentive for producers to increase production


What best describes the economic effect that results from a government budget surplus?

Overall demand decreases reducing the incentive for producers to increase production


Which of the following best describes the economic effect that results from the government having budget surplus?

Demand increases, pushing producers to increase supply --> overal demand decreases, reducing the incentivefor producers to icrease production


What best describes the purpose of agricultural marketing act?

The government purchased surplus crops from farmers. A+


How do you calculate government's operating surplus or deficit?

To calculate a government's operating surplus or deficit, subtract total government expenditures from total government revenues. If revenues exceed expenditures, the result is an operating surplus; if expenditures exceed revenues, it results in a deficit. This calculation typically includes only current operating revenues and expenses, excluding capital expenditures and revenues. The formula can be expressed as: Operating Surplus/Deficit = Total Revenues - Total Expenditures.


How can one determine the economic surplus on a graph?

To determine the economic surplus on a graph, calculate the area between the supply and demand curves up to the equilibrium point. This area represents the total economic surplus in the market.


What describes the situation that occurs when the equilibrum quantity has been reached?

there is no surplus or shortage


What are the effects and results of surplus?

I d


What happens when the government collects more revenue than it spends?

When the government collects more revenue than it spends, it generates a budget surplus. This surplus can be used to pay down national debt, invest in infrastructure, or save for future needs. Additionally, a surplus can provide the government with more flexibility in fiscal policy, potentially allowing for lower taxes or increased spending in other areas. Ultimately, a budget surplus can strengthen the overall economic position of a country.


When was the last US government surplus?

The last U.S. government budget surplus occurred in fiscal year 2001, when the federal government recorded a surplus of approximately $128 billion. Since then, the U.S. has generally run budget deficits, driven by factors such as increased spending and tax cuts. The surpluses of the late 1990s and early 2000s were largely attributed to strong economic growth and rising tax revenues.


What will happen when the government collects more revenue than it spends?

When the government collects more revenue than it spends, it generates a budget surplus. This surplus can be used to pay down existing debt, invest in public projects, or save for future economic downturns. Additionally, a surplus can lead to lower interest rates and increased investor confidence, potentially stimulating economic growth. However, it can also raise questions about fiscal policy and the optimal use of excess funds.


How does the government budget surplus affect the trade balance?

A government budget surplus occurs when a government's revenue exceeds its expenditures, which can lead to reduced borrowing and lower interest rates. This can strengthen the national currency, making exports more expensive and imports cheaper, potentially worsening the trade balance. However, a surplus can also reflect a healthy economy, which may increase domestic consumption and demand for imports, further impacting the trade balance negatively. Ultimately, the relationship between government budget surplus and trade balance is complex and influenced by various economic factors.