Annually balanced government budgets
A) are easy to implement due to the total control of government over its budget components in the short run.
B) would allow the level of government expenditures to be independent of the changes in real GDP.
C) would reduce the size of output gaps.
D) would undermine the success of stabilization policies implemented by the government.
E) would require the federal government to control both fiscal and monetary policy.
Correct Answer:
Verified
Q108: If the government were able to operate
Q109: An annually balanced government budget would tend
Q115: The Canadian tax and transfer system acts
Q117: Most economists believe that balancing the government
Q120: An annually balanced government budget is a
A)destabilizer
Q121: Suppose legislation in Canada required annually balanced
Q123: Suppose the government decided to ensure that
Q124: The 2008-2009 global recession had an effect
Q125: Implementation of cyclically balanced government budgets
A)result in
Q125: Transfer payments (such as welfare payments and
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