Which of the following is (are) true? I. One potential problem associated with attempting to cyclically balance the budget is that politicians often do not want to raise taxes or cut spending.
II) When attempting to cyclically balance the budget, politicians can depend on the fact that once policy makers predict the length and intensity of one cycle, it applies to all cycles.
III) One potential problem associated with attempting to cyclically balance the budget is that it requires policymakers to accurately predict the length and intensity of the cycle.

Question

Quizplus · Accepted Answer

Explanation: Statement I is true because politicians often resist raising taxes or cutting spending due to potential unpopularity. Statement III is true because accurately predicting economic cycles is challenging. Statement II is false because each economic cycle can vary in length and intensity, making it unreliable to apply predictions from one cycle to all others.

Which of the Following Is (Are) True? I