Question

Which of the following best describes the federal government's annual budgets for the last eighteen years?

a) There were budget surpluses for the first several years, then budget deficits for several more, followed by two years of surpluses.
b) There were budget deficits for the first couple of years, then budget surpluses for several more, followed by several years of deficits.
c) There were budget deficits for all of the years.
d) There were budget surpluses for all of the years.

Answer 1

The federal government's annual budgets for the last eighteen years have primarily shown budget deficits, with a brief period of surpluses at the end of the 1990s but returning to consistent deficits from 2002 onwards, especially during economic recessions.

Step-by-step explanation:

The federal government's annual budgets for the last eighteen years have predominantly shown budget deficits. There was a period of budget surpluses from 1998 to 2001, but following that, the federal budget returned to deficits starting in 2002. Significant increases in the deficit occurred during the recessions of 2007-2009 and in 2020. To answer the student's question, the best description of the federal government's annual budget over the last eighteen years is most closely represented by option c) There were budget deficits for all of the years. Although there were brief periods of surpluses at the end of the 1990s, the overwhelming trend of the past eighteen years has been consistent deficits, particularly during times of economic recession.