Government Spending, GDP, and Crowding Out Private Investment


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question 1 of 3

Why can crowding out have a strong impact on the economy?

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1. Which of the following BEST describes crowding out?

2. Which of the following is an example of a budget surplus?

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About This Quiz & Worksheet

This quiz and corresponding worksheet will help you gauge your understanding of the federal budget. Topics you'll need to know to pass the quiz include understanding the effects of crowding out on the economy as well as knowing the best description of crowding out.

Quiz & Worksheet Goals

Use this printable worksheet and quiz to review:

  • Effects of crowding out
  • Definition of crowding out
  • Characteristics of a budget surplus
  • Calculating national debt in a given problem

Skills Practiced

This worksheet and quiz will let you practice the following skills:

  • Knowledge application - use your knowledge to answer questions about the federal budget
  • Defining key concepts - ensure that you can accurately define main phrases, such as crowding out and budget surplus
  • Reading comprehension - ensure that you draw the most important information from the related federal budget lesson

Additional Learning

To learn more about the federal budget, review the corresponding lesson on Government Spending, GDP, and Crowding Out Private Investment. This lesson will help you:

  • Define what budget surplus and deficit mean
  • Describe what the national debt involves
  • Appreciate the effects of crowding out
  • Understand how government overspending and borrowing negatively impacts the economy
  • Identify the largest components of the federal budget