The immediate primary cause of the swing from federal budget surpluses in 2000 and 2001 to a budget deﬁcit in 2002 was
A) the tax cuts of 2001.
B) spending increases relating to the wars in Afghanistan and Iraq.
C) the recession of 2001.
D) the acceleration of inﬂation in 2001 and 2002.

Question

Quizplus · Accepted Answer

The recession of 2001 led to decreased tax revenues and increased government spending on social safety nets, contributing to the budget deficit.

The Immediate Primary Cause of the Swing from Federal Budget