What happens typically to a budget deficit during a recession?
A. It increases because of tax changes.
B. It decreases because of spending decreases.
C. It decreases automatically.
D. It increases automatically.
Answer: D
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Indicate whether the statement is true or false
Explain the basic macroeconomic policy trilemma for open economies
What will be an ideal response?
The job loss rate
A) equals 1 minus the job finding rate. B) remains constant over the business cycle. C) rises in recessions. D) rises in expansions.
Which of the following functions of government gives property owners the incentive to use their property efficiently?
A) making sure that courts are lenient on people who steal private property B) the protection of property rights C) the enforcement of antitrust legislation D) the financing of public goods