A budget policy in which the government is expected to run a big enough surplus during periods of high employment to offset deficits during an ensuing period of excessive unemployment is called a(n)

Question

Quizplus · Accepted Answer

The description matches the concept of a budget balanced over the course of the business cycle, where the government aims to balance their budget over time, offsetting deficits during periods of high unemployment with surpluses during periods of high employment. It is also known as a cyclical or countercyclical budget. The options A, B, C, and D do not accurately reflect this type of budget policy.

A Budget Policy in Which the Government Is Expected to Run