It is generally true that elected officials find it easier to:
A) cut taxes.
B) cut government spending.
C) raise taxes and cut government spending.
D) raise both taxes and government spending.
Correct Answer:
Verified
Q78: If output is falling, a procyclical fiscal
Q79: As the economy expands, tax revenues:
A)fall and
Q80: Automatic stabilizers cause:
A)deeper recessions and more rapid
Q81: As income increases during the recovery from
Q82: Property taxes are:
A)not an automatic stabilizer because
Q84: Suppose the government never borrows, so that
Q85: If an economy is above potential output
Q86: If income increases, a budget deficit will:
A)tend
Q87: In contrast to the functional finance view,
Q88: When inflation and unemployment are both higher
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