The direction of discretionary fiscal policy can not be examined by the simple look at the changes in the actual budget deficits or surpluses. This is because:
A) those changes may reflect the changes in the general price level.
B) those changes may reflect changes in the tax revenues as a result of change in GDP.
C) those changes may reflect the changes in the tax revenues as a result of change in imports.
D) it is impossible to calculate the changes in the actual budget deficits or surpluses.
Correct Answer:
Verified
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Q39: Budget policy is government policy on:
A) spending
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Q44: The "structural budget balance" refers to:
A) the
Q45: The structural budget balance tells us:
A) that
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A) reduce
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