During World War II, the economic recession that reduced equilibrium income below potential income in most European countries:

Question

Quizplus · Accepted Answer

The economic recession during World War II would have increased the cyclical deficit, as cyclical deficits are directly related to the economic cycle, increasing during downturns due to lower tax revenues and higher government spending on unemployment benefits and other social welfare programs.

During World War II, the Economic Recession That Reduced Equilibrium