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The primary objective of the ARRA was to stimulate the economy by creating jobs and saving existing ones.
Answer: True
The primary objective of the ARRA was to stimulate the economy by saving existing jobs and creating new ones in response to the Great Recession.
In addition to job creation, the ARRA aimed to provide temporary relief and invest in areas like infrastructure and education.
Answer: True
Beyond saving and creating jobs, the ARRA aimed to offer temporary relief to those most affected by the recession and to make investments in critical sectors such as infrastructure, education, health, and renewable energy.
The ARRA was primarily based on Supply-side economic theory.
Answer: False
The ARRA was rooted in Keynesian economic theory, which advocates for government intervention to stimulate demand during economic downturns, rather than supply-side theory which focuses on tax cuts and deregulation.
Most economists believe the ARRA was larger than necessary to combat the Great Recession.
Answer: False
The consensus among most economists is that the ARRA was likely smaller than what might have been optimally required to fully counteract the Great Recession, though its benefits are generally considered to have outweighed its costs.
A group of economists, including Nobel laureates Prescott and Smith, opposed the ARRA, advocating for lower tax rates and reduced government burdens.
Answer: True
A group of economists, including Nobel laureates Edward C. Prescott and Vernon L. Smith, publicly opposed the ARRA, arguing that fiscal policy should prioritize lower tax rates and reduced government burdens to stimulate economic growth.
What was the primary goal of the American Recovery and Reinvestment Act of 2009 (ARRA)?
Answer: To stimulate the economy by saving and creating jobs.
The primary objective of the ARRA was to stimulate the economy by saving existing jobs and creating new ones in response to the Great Recession.
Which economic theory formed the basis for the ARRA?
Answer: Keynesian Economics
The ARRA was rooted in Keynesian economic theory, which posits that government intervention through increased spending can mitigate economic downturns by stimulating demand.
The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law by President George W. Bush.
Answer: False
The American Recovery and Reinvestment Act of 2009 was signed into law by President Barack Obama, not President George W. Bush.
No Republican members of the House voted for the ARRA, but three Republican senators supported it.
Answer: True
Reflecting significant partisan division, no Republican members in the House of Representatives voted for the ARRA, although three Republican senators did support its passage.
The Senate version of the ARRA included a one-year extension for revisions to the alternative minimum tax, adding significant cost.
Answer: True
A key difference between the House and Senate versions of the ARRA was the Senate's inclusion of a one-year extension for alternative minimum tax adjustments, which increased the bill's overall cost.
The Democratic Congressional Campaign Committee (DCCC) created a 'Hypocrisy Hall of Fame' to list Republicans who voted for the ARRA but later criticized it.
Answer: False
The DCCC created a 'Hypocrisy Hall of Fame' to highlight Republicans who voted against the ARRA but subsequently claimed credit for ARRA-funded projects in their districts.
How did Republicans generally react to the ARRA during its passage?
Answer: They criticized its size, and no House Republicans voted for it.
Republicans largely criticized the ARRA's substantial cost, resulting in no House Republicans voting in favor of the bill, although three senators did support it.
What was a significant difference between the House and Senate versions of the ARRA?
Answer: The Senate version extended the alternative minimum tax revision for one year.
A notable divergence between the House and Senate versions of the ARRA was the Senate's inclusion of a one-year extension for alternative minimum tax revisions, which added considerable cost to the bill.
The ARRA was initially estimated to cost $500 billion, with later revisions placing the total cost around $700 billion.
Answer: False
The ARRA was initially estimated to cost approximately $787 billion, with later revisions placing the total cost between $831 billion over the 2009-2019 period.
The ARRA allocated the largest portion of its funding, over 45%, to tax incentives for individuals.
Answer: False
The ARRA allocated 45% of its funding to federal spending programs, 37% to tax incentives, and 18% to state and local fiscal relief. Tax incentives for individuals constituted a significant portion of the 37% allocated to tax incentives.
Federal spending programs funded by the ARRA included investments in transportation, energy efficiency, and unemployment benefits.
Answer: True
Federal spending programs supported by the ARRA encompassed investments in transportation infrastructure, energy efficiency upgrades, extensions of federal unemployment benefits, and support for scientific research.
The ARRA provided $237 billion in tax incentives specifically for companies.
Answer: False
The ARRA allocated $237 billion in tax incentives for individuals. Tax incentives for companies totaled $51 billion.
A payroll tax credit of $400 per worker was introduced under the ARRA for 2009 and 2010.
Answer: True
The ARRA introduced a new payroll tax credit, providing $400 per worker or $800 per couple for the tax years 2009 and 2010.
The ARRA expanded the child tax credit, making it accessible only to families who owed federal income taxes.
Answer: False
The ARRA expanded the child tax credit, allocating $15 billion to make the credit accessible to more families, including those who did not owe federal income taxes.
The ARRA included an $8,000 refundable credit for homes purchased between January 1, 2009, and December 1, 2009.
Answer: True
The Act provided an $8,000 refundable credit for homes purchased within a specified period in 2009, with provisions for repayment repeal for first-time homebuyers.
The ARRA allocated $155.1 billion to transportation infrastructure projects.
Answer: False
The ARRA allocated a total of $105.3 billion to infrastructure, with $48.1 billion specifically designated for transportation projects.
The HITECH Act, part of the ARRA, focused on promoting the adoption of health information technology.
Answer: True
The Health Information Technology for Economic and Clinical Health (HITECH) Act, enacted as part of the ARRA, allocated $25.8 billion to promote the adoption and meaningful use of health information technology.
Approximately $100 billion was allocated to education under the ARRA, with a significant portion for Pell Grants.
Answer: True
The ARRA allocated approximately $100 billion to education, including substantial funding for Pell Grants, aid to school districts, and programs for special education and early childhood development.
The ARRA provided aid for low-income workers, the unemployed, and retirees, totaling over $100 billion.
Answer: False
The ARRA provided $82.2 billion for aid to low-income workers, the unemployed, and retirees, which included extending unemployment benefits, enhancing food assistance programs, and providing one-time payments to Social Security recipients.
Transportation projects received the largest portion of the ARRA's infrastructure funding.
Answer: True
Within the $105.3 billion allocated for infrastructure, transportation projects received the largest share, amounting to $48.1 billion for highways, bridges, and rail.
The ARRA allocated $18 billion for energy efficiency and renewable energy research.
Answer: False
The ARRA allocated $27.2 billion for energy efficiency and renewable energy research and investment, as part of a broader $21.5 billion investment in energy infrastructure.
The ARRA provided $14.7 billion for housing programs, including repairs for public housing and rental assistance.
Answer: True
The ARRA allocated $14.7 billion towards housing programs, supporting public housing repairs, low-income housing financing, rental assistance, and the Neighborhood Stabilization Program.
The ARRA dedicated $7.6 billion to scientific research, with NASA being the largest recipient.
Answer: False
While the ARRA dedicated $7.6 billion to scientific research, the National Science Foundation ($3 billion) and the Department of Energy ($2 billion) were larger recipients than NASA ($1 billion).
The 'Buy American' provision required that all goods used in ARRA-funded projects must be produced in the United States.
Answer: False
The 'Buy American' provision stipulated that iron, steel, and manufactured goods used in ARRA-funded public projects must be produced in the United States, but it did not mandate that *all* goods must be U.S.-produced.
The 'Buy American' provision led to an agreement between the U.S. and Canada to exempt Canadian companies from its requirements.
Answer: True
The 'Buy American' provision generated significant international concern, leading to an agreement between the U.S. and Canada to exempt Canadian companies from its requirements to avoid trade repercussions.
Section 1603 of the Recovery Act provided cash grants to solar companies instead of tax credits.
Answer: True
Section 1603 of the Recovery Act offered cash grants as an alternative to tax credits for solar companies, particularly benefiting those not yet profitable.
President Obama acknowledged in 2010 that 'shovel-ready' infrastructure projects were indeed straightforward to implement.
Answer: False
By 2010, President Obama acknowledged that 'shovel-ready' projects were not as straightforward to implement as initially anticipated, reflecting delays in project execution.
The ARRA allocated $6 billion for the modernization of the electrical grid.
Answer: False
The ARRA allocated $4.5 billion for modernizing the electrical grid and smart grid technology, as part of a broader $21.5 billion investment in energy infrastructure.
The ARRA included $5 billion for weatherizing modest-income homes.
Answer: True
The ARRA allocated $5 billion for weatherizing modest-income homes as part of its energy efficiency initiatives, aiming to reduce energy consumption and costs for low-income households.
The ARRA allocated $10.5 billion for broadband expansion and government IT system upgrades.
Answer: True
The ARRA allocated $10.5 billion towards communications, information, and security technologies, including funding for broadband expansion and upgrades to government IT systems.
What was the initial estimated cost of the ARRA when it was passed?
Answer: $787 billion
The initial estimated cost of the ARRA when it was passed was approximately $787 billion.
How was the ARRA's funding allocated among its main components?
Answer: 45% federal spending, 37% tax incentives, 18% state relief
The ARRA's funding was distributed with 45% designated for federal spending programs, 37% for tax incentives, and 18% for state and local fiscal relief.
Which of the following was NOT a category of federal spending programs funded by the ARRA?
Answer: Expansion of the child tax credit
The expansion of the child tax credit was primarily a tax incentive measure, not a federal spending program category such as infrastructure, energy, or unemployment benefits.
What was the total amount allocated for tax incentives for individuals under the ARRA?
Answer: $237 billion
The ARRA allocated $237 billion towards tax incentives specifically for individuals, encompassing measures like the payroll tax credit and expansions of existing credits.
What specific tax incentive provided a credit of $400 per worker or $800 per couple for 2009 and 2010?
Answer: Payroll Tax Credit
The Payroll Tax Credit was introduced under the ARRA, offering a credit of $400 per worker or $800 per couple for 2009 and 2010.
How did the ARRA address the Alternative Minimum Tax (AMT)?
Answer: It increased the AMT floor for joint filers for one year.
The ARRA included a provision to increase the Alternative Minimum Tax (AMT) floor for joint filers for one year, aiming to prevent a larger number of taxpayers from being subject to the AMT.
What was the purpose of the HITECH Act, enacted as part of the ARRA?
Answer: To promote the adoption of health information technology.
The HITECH Act, integrated into the ARRA, was designed to foster the adoption and meaningful utilization of health information technology, allocating significant funds for this purpose.
How much funding was allocated to education under the ARRA?
Answer: $100 billion
Approximately $100 billion was allocated to education through the ARRA, supporting initiatives such as increased Pell Grants and aid to school districts.
What was the largest portion of the ARRA's infrastructure investment dedicated to?
Answer: Transportation projects
Within the ARRA's infrastructure funding, transportation projects received the largest allocation, encompassing highways, bridges, and rail initiatives.
How much funding was allocated for the cleanup of radioactive waste under the ARRA?
Answer: $6 billion
The ARRA allocated $6 billion specifically for the cleanup of radioactive waste, primarily from nuclear weapons production sites, as part of its energy infrastructure investments.
What was the purpose of the 'Buy American' provision in the ARRA?
Answer: To require U.S. production of iron, steel, and manufactured goods for funded projects.
The 'Buy American' provision mandated that iron, steel, and manufactured goods utilized in public projects funded by the stimulus must be produced domestically, aiming to bolster U.S. industries.
What did President Obama realize about 'shovel-ready' projects by 2010?
Answer: They were not as straightforward to implement as initially believed.
By 2010, President Obama acknowledged that 'shovel-ready' infrastructure projects proved more complex and less straightforward to implement than initially projected.
What was the ARRA's provision for weatherizing homes?
Answer: $5 billion for weatherizing modest-income homes.
The ARRA included $5 billion specifically for weatherizing modest-income homes as part of its energy efficiency initiatives.
How much funding was allocated for communications, information, and security technologies under the ARRA?
Answer: $10.5 billion
The ARRA allocated $10.5 billion towards communications, information, and security technologies, supporting broadband expansion and government IT upgrades.
Economists like Paul Krugman and Larry Summers recommended a stimulus package smaller than the ARRA.
Answer: False
Economists such as Paul Krugman and Larry Summers, along with others like Martin Feldstein, generally favored a larger economic stimulus package than what was ultimately enacted.
The Congressional Budget Office (CBO) initially projected that the ARRA would decrease GDP by the end of 2009.
Answer: False
The CBO initially projected that the ARRA would increase GDP by 1.4% to 3.8% by the end of 2009, not decrease it.
The CBO projected that by 2019, the ARRA would lead to a net decrease in GDP due to 'crowding out' effects.
Answer: True
The CBO projected that by 2019, the ARRA would result in a net decrease in GDP of 0.1% to 0.3% due to 'crowding out' effects stemming from increased national debt.
The CBO's final analysis in 2015 concluded that the ARRA significantly reduced the unemployment rate.
Answer: True
The CBO's final analysis in February 2015 concluded that the ARRA had reduced the unemployment rate by 1.1 to 4.8 percentage points.
Moody's and IHS Global Insight estimated that the ARRA saved or created approximately 5 million jobs one year after enactment.
Answer: False
Moody's and IHS Global Insight estimated that the ARRA saved or created between 1.6 to 1.8 million jobs one year after enactment, forecasting a total impact of 2.5 million jobs upon full implementation.
The White House Council of Economic Advisers (CEA) estimated in July 2010 that the ARRA had saved or created between 2.5 and 3.6 million jobs.
Answer: True
In July 2010, the CEA estimated that the ARRA had saved or created between 2.5 and 3.6 million jobs by the second quarter of 2010.
Critics calculated the ARRA cost between $185,000 to $278,000 per job created, not accounting for infrastructure benefits.
Answer: True
Critics calculated the cost per job created by the ARRA to be between $185,000 and $278,000, a figure that did not incorporate the long-term benefits derived from infrastructure and other investments.
The CBO reported in November 2011 that the ARRA's employment effects had significantly increased throughout 2011.
Answer: False
The CBO reported in November 2011 that the ARRA's employment effects began to wane at the end of 2010 and continued to do so throughout 2011.
A 2013 study by the Reason Foundation found that a majority of companies receiving ARRA funding hired new workers and retained them.
Answer: False
A 2013 Reason Foundation study found that only 23% of companies receiving ARRA funding hired new workers and retained all of them, with 30% laying off all hired workers once funding ceased.
The CBO estimated the ARRA would increase federal budget deficits by $787 billion over the 2009-2019 period.
Answer: True
The CBO estimated that the ARRA would increase federal budget deficits by a total of $787 billion over the 2009-2019 period.
The CBO's final analysis in February 2015 reported total outlays for the ARRA were $663 billion, including $97 billion in refundable tax credits.
Answer: True
The CBO's final analysis indicated that total outlays for the ARRA over six years amounted to $663 billion, of which $97 billion comprised refundable tax credits.
Which economists, cited in the source, generally favored a larger stimulus than what was enacted?
Answer: Martin Feldstein, Larry Summers, and Paul Krugman
Economists such as Martin Feldstein, Larry Summers, and Paul Krugman advocated for a stimulus package larger than the ARRA, expressing concerns about its scope and potential impact.
What did the Congressional Budget Office (CBO) initially project the ARRA's impact on employment by the end of 2009?
Answer: An increase of 0.8 million to 2.3 million jobs
The CBO initially projected that the ARRA would increase employment by 0.8 million to 2.3 million jobs by the end of 2009.
According to the CBO's final analysis in February 2015, what was the estimated impact of the ARRA on the unemployment rate?
Answer: It reduced the unemployment rate by 1.1 to 4.8 percentage points.
The CBO's final analysis in February 2015 estimated that the ARRA reduced the unemployment rate by a range of 1.1 to 4.8 percentage points.
What justification did the Obama administration offer for unemployment rates exceeding initial forecasts after the ARRA's passage?
Answer: The recession was more severe than initially projected.
The Obama administration justified higher-than-forecasted unemployment rates by arguing that the recession's severity surpassed initial projections made during the ARRA's drafting.
What did Moody's and IHS Global Insight estimate as the total job impact of the ARRA once fully implemented?
Answer: 2.5 million jobs
Moody's and IHS Global Insight estimated that the ARRA would save or create a total of 2.5 million jobs upon its full implementation.
What was the estimated cost per job created according to critics' calculations of the ARRA, excluding infrastructure benefits?
Answer: $185,000 - $278,000
Critics calculated the cost per job created by the ARRA to range from $185,000 to $278,000, a figure that did not account for the broader infrastructure and other benefits derived from the investments.
What did the CBO report in November 2011 regarding the ARRA's employment effects?
Answer: The effects began to wane at the end of 2010 and continued to do so.
The CBO reported in November 2011 that the employment effects of the ARRA started to diminish at the close of 2010 and continued this trend throughout 2011.
What did a 2013 study by the Reason Foundation find regarding companies that received ARRA funding?
Answer: Only 23% hired new workers and retained all of them.
A 2013 study by the Reason Foundation indicated that only 23% of companies receiving ARRA funding successfully hired new workers and retained them, with a significant portion laying off all hired workers after funding ceased.
What was the CBO's estimate for the ARRA's impact on federal budget deficits over the 2009-2019 period?
Answer: An increase of $787 billion
The CBO estimated that the ARRA would contribute to an increase in federal budget deficits by $787 billion over the period from 2009 to 2019.
What total amount did the CBO report as ARRA outlays over the six years of its impact?
Answer: $663 billion
The CBO's final analysis reported total outlays for the ARRA over six years to be $663 billion.
Recovery.gov was designed to provide transparency by tracking stimulus money spending.
Answer: True
Recovery.gov was established as the official website for the ARRA, intended to offer transparency by enabling taxpayers to track the allocation and expenditure of stimulus funds.
Early criticisms of Recovery.gov noted it offered more detailed project information than privately run sites.
Answer: False
Early criticisms of Recovery.gov indicated that it provided limited detail, often consisting of news releases and complex spreadsheets, in contrast to more accessible information found on privately managed websites.
Vice President Joe Biden led the oversight of the ARRA's implementation through a high-level advisory board.
Answer: True
Vice President Joe Biden chaired the President's Economic Recovery Advisory Board, tasked with overseeing the implementation and effectiveness of the ARRA.
Senator Orrin Hatch launched an inquiry into ARRA-funded green energy grants in 2016.
Answer: True
In May 2016, Senator Orrin Hatch initiated an inquiry into ARRA grants awarded to green energy companies, sending questions to the IRS and Treasury Department.
Senators Coburn and McCain criticized the ARRA for not maximizing job creation for the money spent, highlighting wasteful projects.
Answer: True
Senators Tom Coburn and John McCain released a report in August 2010 identifying numerous ARRA projects they deemed wasteful and criticized the stimulus for not maximizing job creation relative to its expenditure.
What criticism did early reports highlight regarding the Recovery.gov website?
Answer: It offered little detail beyond news releases and complex spreadsheets.
Early reports on Recovery.gov indicated that it provided limited information, primarily consisting of news releases and complex spreadsheets, rather than detailed project data.
Who was appointed to head the Recovery Accountability and Transparency Board (RATB) to monitor ARRA fund allocation?
Answer: Earl Devaney
Earl Devaney was appointed to lead the Recovery Accountability and Transparency Board (RATB), responsible for monitoring the allocation of ARRA funds and preventing fraud.
What criticism did Senators Coburn and McCain level against ARRA projects in their August 2010 report?
Answer: The projects did not create enough jobs for the money spent.
Senators Coburn and McCain criticized ARRA projects for not maximizing job creation relative to the funds expended, highlighting concerns about efficiency and value for money.