Question

If the national debt rises to the debt ceiling and there is currently a budget ________, the Congress and the President must agree to ________ the debt ceiling or else the federal government will have insufficient funds to pay its bills and will be forced to shut down

Answer 1

Answer:

If the national debt rises to the debt ceiling and there is currently a budget deficit, the Congress and the President must agree to raise the debt ceiling or else the federal government will have insufficient funds to pay its bills and will be forced to shut down .

Explanation:

A budget deficit arises when the state spends more money than it receives. Government debt is the sum of the budget deficits from all previous years.

The budget deficit varies with the business cycle. Therefore, it is sometimes divided into a structural budget deficit, which is not due to cyclical fluctuations, and a cyclical budget deficit, which is large in the recession and small in the recession. The reason for the cyclical budget deficit's variation is that tax revenues are small when the economy is in a recession, and that the transfers, that is, the contributions, are at the same time large.