Instead of trying to balance the budget every year, it is easier to:

A. balance the budget over the business cycle.
B. allow deficit spending only in times of economic downturn.
C. allow surpluses to build during times of economic booms.
D. All of these statements are true.


A. balance the budget over the business cycle.

Economics

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As the dollar exchange rate, e, decreases, the quantity of dollars supplied in the foreign exchange market ________, and the quantity of dollars demanded in the foreign exchange market ________.

A. decreases; decreases B. increases; increases C. decreases; increases D. increases; decreases

Economics

Net exports for the United States

A. are always positive numbers. B. are a result of decreasing domestic consumption. C. may be negative. D. are a result of decreasing investment in the manufacturing industries.

Economics

Using Figure 1.7, we know the production of 4 units of soda and 2 units of pizza is 

A. impossible because we have the resources but do not have the technology. B. possible, but only if all resources were fully employed. C. impossible because we have the technology but do not have the resources. D. possible, but there would be unemployed resources.

Economics

The Friedman-Phelps analysis shows that a negative relationship between inflation and unemployment holds

A. even when the natural rate of unemployment changes. B. even when expected inflation changes. C. as long as the expected inflation rate and the natural rate of unemployment are approximately constant. D. even if both the expected inflation rate and the natural rate of unemployment change.

Economics