If a government runs a cyclically balanced budget, its revenue will equal its expenditure:
a. each year
b. at each phase of the business cycle.
c. over the course of the business cycle.
d. only during expansions.
e. only during recessions.
c
You might also like to view...
Which statement is consistent with the economic way of thinking?
A) Politicians seek to advance their own interests. B) Politicians are not only concerned with money and material goods. C) Politicians do not necessarily pursue narrow or selfish goals. D) All of the above. E) None of the above.
According to the Laffer curve, after raising the tax rate to some level, any further increase by government will cause tax revenues to decrease
Indicate whether the statement is true or false
An example of a policy to combat poverty is
a. TANF. b. food stamps. c. Social Security. d. All of the above are correct.
In fiscal year 2011, the U.S. government ran a deficit of about $1,300 billion. In fiscal year 2012, the government ran a deficit of about $1,087 billion. Other things the same, this change would be expected to have
a. decreased interest rates and investment. b. decreased interest rates and increased investment. c. increased interest rates and investment. d. increased interest rates and decreased investment.