Which one of the following happens automatically if the economy goes into a recession?
A) Government outlays increase and revenues do not change.
B) Revenues decrease and government outlays do not change.
C) The government budget deficit increases or the government budget surplus decreases.
D) The government budget deficit decreases.
E) Both government outlays and revenues increase, and the deficit stays the same.
Correct Answer:
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Q64: If the economy is in a recession
Q65: Use the figure below to answer the
Q66: During an expansion, revenues
A)and government outlays decrease.
B)decrease
Q67: Automatic fiscal policy
A)requires action by Parliament.
B)is triggered
Q68: A cyclical deficit occurs when
A)government outlays are
Q70: Use the figure below to answer the
Q71: During a recession, revenues
A)and government outlays decrease.
B)decrease
Q72: Use the figure below to answer the
Q73: Which of the following is an example
Q74: Use the figure below to answer the
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