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The Budget Policy That Sets the Government's Budget to Attain

Question 43

Multiple Choice

The budget policy that sets the government's budget to attain a socially optimal combination of unemployment and inflation is likely to


A) be balanced each and every year.
B) cause continual growth in the public debt.
C) have a cyclically adjusted surplus.
D) run surpluses even when unemployment is high.
E) be balanced over the course of the business cycle.

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