64) What are the two components of federal spending? 65) The federal budget has three components. Name them. 66) Describe the three broad categories of the U.S. budget. 67) What is the federal government’s largest source of revenue? 68) Explain how a change in tax rates influences aggregate demand and aggregate supply. 69) Explain how an increased federal budget deficit resulting from a recession can actually help stabilize an economy. 70) Describe the relationship illustrated by the Laffer curve. 71) Why do most economists believe that the Laffer argument does not apply to broad-based taxes? 72) Explain the differences between a federal budget deficit a federal budget surplus and a balanced federal budget. 73) Explain how automatic stabilizers work.
