If the government wishes to maintain a balanced budget during a recession,it must

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During a recession, there is typically a decrease in economic activity, resulting in lower tax revenues for the government. To maintain a balanced budget, the government can either increase taxes or decrease government spending or reduce transfer payments. These actions would help to increase revenue or reduce expenditures, allowing the government to balance its budget. Option B is not the best choice because decreasing taxes would reduce government revenue, making it difficult to balance the budget. Option C and D are not suitable as they involve increasing government spending or transfer payments, which would increase the deficit. Option E involves conflicting actions, such as increasing taxes while simultaneously increasing government spending, which would not help balance the budget.

If the Government Wishes to Maintain a Balanced Budget During