q2. Which of the following statements about government spending is true?

• Total government spending as a percentage of GDP has increased every year since the 1960's.
• Interest payments on government debt as a percentage of GDP have steadily increased.
• The share of healthcare spending in GDP has increased substantially since the 1960's.

q3. According to the neoclassical approach to fiscal policy

• the crowding out effect is a significant problem that reduces the effectiveness of expansionary fiscal policy
• the crowding out effect is quite limited as the demand for private loans is low in times of recessions
• the crowding out effect is a significant problem that increases aggregate demand

q4. If in 2017, the government spent over $650 billion more from its budget than it brought in during that year. This is called the

• budget deficit.
• budget surplus.
• federal debt.