A major problem with the implementation of an annually balanced budget is that it:
a. allows the national debt to burgeon with chronic deficits
b. relies upon government officials to budget for surpluses during economic booms in order to cover deficits during recessions.
c. requires annual revenues to match with outlays even during times of war, when there is a sudden increase in military expenditures.
d. magnifies the fluctuations in the business cycle.
e. dampens swings in the business cycle.
d
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Answer the following statements true (T) or false (F)
1. The poverty rate for female householders without a husband present exceeds the poverty rate for blacks and Hispanics. 2. The biggest disincentive to employment for those on welfare is the effect of taxes as they earn income. 3. For many welfare recipients, taking a job reduces income. 4. As incomes rise, transfer benefits to the poor decrease. 5. A minimum wage rate job raises a family out of poverty.
Which of the following is not an example of money used as a unit of account?
a. A British pound is worth $3.00. b. Auto repairs were $3,000 last year. c. Business travel totaled 12,000 miles. d. Gasoline sells for $1.20 per gallon and oil is $5.00 per quart.
A production possibilities curve has "good X" on the horizontal axis and "good Y" on the vertical axis. On this diagram, the opportunity cost of good X, in terms of good Y, is represented by the:
A. distance to the curve from the horizontal axis. B. distance to the curve from the vertical axis. C. distance from the origin to the curve. D. change in Y for each change in X along the curve.
Which of the following indicates that the U.S. economy has become more stable since 1950?
A) longer recessions B) shorter expansions C) less severe fluctuations in real GDP D) All of the above indicate that the U.S. economy has become more stable since 1950.