Most economists believe that balancing the government budget over the business cycle, rather than for each fiscal year,
A) is absolutely necessary for prudent management of the economy.
B) is a worthy idea but requires accurate forecasting and definition of the business cycle.
C) is the same as an annually balanced budget.
D) would be pro- cyclical.
E) would stabilize the economy and produce an annual budget balance of zero.
Correct Answer:
Verified
Q61: If the economy goes into a recession,
Q62: Consider the following data about government debt
Q63: In the long run, the government budget
Q64: The stock of government debt will continue
Q65: There is a long- term burden of
Q67: The difference between the government's debt and
Q68: The diagram below shows two budget deficit
Q69: the stock of government debt is increasing.
A)1
Q70: Consider a government with an outstanding stock
Q71: Transfer payments (such as welfare payments and
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