The proposition that federal expenditures and taxes would have to be equal to each other every year is called the _____ approach.

Question

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The proposition that federal expenditures and taxes would have to be equal to each other every year is called the annually balanced budget approach. Choice A, functional finance, refers to the idea that government fiscal policy should focus on achieving full employment and price stability rather than balancing the budget. Choice B, cyclically balanced budget, refers to the idea that the government should balance the budget over the course of an economic cycle, allowing for deficits during downturns and surpluses during upswings. Choice D, equality concept, is not a recognized term in economics or fiscal policy.

The Proposition That Federal Expenditures and Taxes Would Have to Be