If the government runs a cyclically balanced budget,its revenue will equal its expenditure
A)each year
B)at each phase of the business cycle
C)over the course of the business cycle
D)only during expansions
E)only during recessions

Question

Quizplus · Accepted Answer

A cyclically balanced budget means that over the course of the business cycle, the government's revenue will equal its expenditure. This accounts for fluctuations in the economy and allows for deficits during recessions and surpluses during expansions. Therefore, the best choice is C.

If the Government Runs a Cyclically Balanced Budget,its Revenue Will