Most economists today believe that:

Question

Quizplus · Accepted Answer

Most economists today believe that the federal government should not seek to balance the budget annually, but let it function as an automatic stabilizer. This means that during economic downturns, the federal government should use fiscal policy to stimulate the economy and increase spending, resulting in a budget deficit. During economic booms, the government should reduce spending and generate a surplus to moderate the economy. This approach helps to smooth out the ups and downs of the business cycle and stabilize the economy in the long run.

Most Economists Today Believe That