In a normal fiscal year in the U.S. the budget is in because O surplus, government expenditures exceed tax collections O deficit, government expenditures exceed tax collections O deficit, tax collections exceed government expenditures O surplus, tax collections exceed government expenditures Question 19 1 pts Assume that the economy has a recessionary gap. Which of the following would be an appropriate fiscal policy response to "fix" the economy? O decrease government spending decrease tax rates decrease transfers decrease interest ratesAssume the economy has an inflationary gap. After some time, the gap is gone, and the price level has increased. Which of the following most likely occurred? The economy auto-corrected. O The government increased transfers. O The government decreased spending. The government decreased tax rates, D Question 17 1 pts Which of the following statements is not correct regarding the U.S. national debt? When the process of roll over is used to pay off debts when they come due, the government remains in debt. The national debt is the amount owed by all entities in the U.S., and Includes the debts of all individuals, companies, and all levels of government. A majority of the debt is owed to foreign entities. The national debt is larger than the country's GDP The national debt is owed entirely in U.S. dollars.Assume that the LRAS curve is to the left of the current, actual RGDP for an economy. In this case, the economy would have an inflationary gap. True O False Question 13 1 pts Which of the following statements regarding tax systems is not correct? O Under a flat tax, the dollar amount paid in taxes must increase as income increases, Under a progressive income tax, when income increases the tax rate increases. Under a regressive income tax, it is possible for the dollar amount paid in taxes to decrease as income increases. Under a progressive income tax, the dollar amount paid in taxes must increase as income increases None of the other choices correctly answers this question since they are all true statements regarding tax systems