Budget deficits tend to grow during recessions because real GDP growth is
A) positive, which increases tax receipts in relation to government expenditures.
B) negative, which reduces tax receipts in relation to government expenditures.
C) zero, which causes neither tax receipts nor government expenditures to grow.
D) negative, which reduces transfer payments in relation to tax receipts.
E) positive, which reduces both tax receipts and transfer payments.
Correct Answer:
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Q26: For the executive branch of government to
Q27: If the government increases spending by $100
Q28: Figure 13.2 Q29: The federal budget deficit as a percentage Q30: Crowding out refers to a(n) Q32: An automatic stabilizer is a(n) Q33: Fiscal policy in the United States is Q34: Discretionary fiscal policy is defined as the Q35: An increase in government spending of $100 Q36: Economists define two components of fiscal policy:
A) increase in
A) change in
A)
A)
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