The federal government deficit or surplus

Question

Quizplus · Accepted Answer

The federal government deficit or surplus may be more a symptom of economic distress than a result of intentional fiscal policy. Economic downturns can lead to decreased tax revenue and increased government spending on safety net programs, which can result in a higher deficit. Conversely, economic upswings can lead to increased tax revenue and decreased government spending on safety net programs, which can result in a surplus. It is important for the government to be mindful of the deficit/surplus and its potential impact on the economy, but a balanced budget at all times may not be feasible or desirable.

The Federal Government Deficit or Surplus