Solved

If the Economy Goes into a Recession, the Cyclically Adjusted

Question 101

Multiple Choice

If the economy goes into a recession, the cyclically adjusted deficit is most likely to


A) remain unchanged, unless government actively changes its fiscal policy.
B) increase, because government expenditures will rise and tax revenues will decline.
C) remain unchanged, although there will be a primary budget surplus.
D) decrease, because government expenditures will decrease and tax revenues will rise.
E) increase, because government expenditures and tax revenues will both rise.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents