Which statement does NOT refer to a potential problem associated with cyclically balancing the federal budget?
A) Different phases of the business cycle are not of equal length or severity.
B) Forecasting the turning point of the economy is very difficult.
C) Most economists agree that the federal budget should be balanced annually to avoid adding to the deficit.
D) Politicians find it difficult to cut spending or raise taxes.

Question

Quizplus · Accepted Answer

This statement does not refer to a potential problem associated with cyclically balancing the federal budget. Instead, it suggests that most economists agree on the need for annual budget balancing, which is not a problem but rather a goal. The other three statements (A, B, and D) do point to potential problems with cyclically balancing the budget, including the variability of the business cycle, the difficulty of forecasting economic performance, and the political challenges of cutting spending or raising taxes.

Which Statement Does NOT Refer to a Potential Problem Associated