Government should not try to
A) eliminate budget surpluses during a recession.
B) eliminate budget deficits during a recession.
C) reduce the national debt in an inflationary gap.
D) balance the budget at potential GDP.
E) balance the budget in an inflationary gap.
Correct Answer:
Verified
Q126: What happens automatically if the economy goes
Q127: A government begins the year with a
Q128: Which is part of federal government spending?
A)
Q129: The cyclical deficit
A) is a persistent economic
Q130: Automatic stabilizers
A) require action by Parliament.
B) are
Q132: Due to automatic stabilizers, when real GDP
Q133: During a recession, tax revenues
A) fall and
Q134: There is a structural deficit when government
Q135: All of the following increase the budget
Q136: Income taxes make up almost half of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents