To turn the cash budget into the full-employment budget,
A) we must adjust the budget deficit or surplus for the automatic reaction of taxes and government spending to the business cycle.
B) we must adjust the budget deficit or surplus for the automatic reaction of the money supply to the business cycle.
C) we must adjust the budget deficit or surplus for the discretionary reaction of taxes and government spending to the business cycle.
D) we must adjust make taxes and government spending independent of the business cycle.
Correct Answer:
Verified
Q21: A change in government tax policy that
Q22: The right measure of fiscal policy is
A)
Q23: An increase in the full-employment deficit
A) shifts
Q24: An increase in the full-employment deficit
A) shifts
Q25: If the Federal Reserve tightens monetary policy
Q27: When real GDP decreases and unemployment increases
A)
Q28: When real GDP increases and unemployment decreases
A)
Q29: Each of the following are further adjustments
Q30: The real interest that government pays on
Q31: The real deficit (dr)
A) is equal to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents