If the government's budget is balanced at the start of a recession,and the government is attempting to stabilize the economy through fiscal policy

Question

Quizplus · Accepted Answer

During a recession, the government typically increases spending and reduces taxes to stimulate economic activity. This would result in a budget deficit, as the government would be spending more than it is collecting in revenue. Therefore, choice B is the correct answer.

If the Government's Budget Is Balanced at the Start of a Recession,and