Economists generally believe that during an expansion, an economy should:
A)balance its budget.
B)run a budget deficit.
C)run a budget surplus.
D)be able to pay off all of its debt.

Question

Quizplus · Accepted Answer

During an economic expansion, governments often run a budget surplus because tax revenues increase due to higher incomes and spending, while spending on social safety nets decreases.

Economists Generally Believe That During an Expansion, an Economy Should