Changes in the budget balance may be the result of economic policy, or they may be caused by fluctuations in the economy.

Question

Quizplus · Accepted Answer

Economic policy decisions, such as changes in tax rates or government spending levels, can impact the budget balance. However, changes in the economy, such as a recession or a period of rapid economic growth, can also affect the budget balance through changes in tax revenue and government spending on programs like unemployment benefits.

Changes in the Budget Balance May Be the Result of Economic