One goal of cyclically balancing the federal budget is to increase spending and decrease taxes when the economy is booming, to reduce the chance of overheating within the economy.

Question

Quizplus · Accepted Answer

Cyclically balancing the federal budget typically involves increasing spending and decreasing taxes during economic downturns to stimulate growth, and doing the opposite—decreasing spending and increasing taxes—when the economy is booming to prevent overheating.

One Goal of Cyclically Balancing the Federal Budget Is to Increase