When budget deficits during recessions are covered by budget surpluses during expansions,it is called:
A)an annually balanced budget.
B)a cyclically balanced budget.
C)crowding out.
D)crowding in.
E)a biennial balanced budget.

Question

Quizplus · Accepted Answer

A cyclically balanced budget adjusts spending and taxes in response to the current state of the business cycle, using budget surpluses during economic expansions to cover deficits during recessions. This approach allows for flexibility in government spending and helps to stabilize the economy. The other options are not applicable to this concept.

When Budget Deficits During Recessions Are Covered by Budget Surpluses