What happens typically to a budget deficit during an economic recovery?
A)It decreases because of tax changes.
B)It increases because of spending decreases.
C)It decreases automatically.
D)It increases automatically.

Question

Quizplus · Accepted Answer

During an economic recovery, a budget deficit typically decreases automatically due to increased tax revenues from higher incomes and reduced unemployment benefits spending, without the need for explicit tax changes or spending decreases.

What Happens Typically to a Budget Deficit During an Economic