Which statement(s) 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 policymakers 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

Statement I is true, as politicians are often hesitant to take unpopular measures such as raising taxes or cutting spending in order to balance the budget. Statement II is false, as the length and intensity of economic cycles can vary greatly, making it difficult to predict and apply a one-size-fits-all solution to budget balancing. Statement III is true, as accurately predicting the length and intensity of economic cycles is essential to effectively cyclically balancing the budget. Therefore, only statements I and III are true, making choice B the correct answer.

Which Statement(s) Is/are TRUE? I