Asked by
Brandon Lusch6633
on Nov 11, 2024Verified
When budget deficits during recessions are covered by budget surpluses during expansions,it is called:
A) an annually balanced budget.
B) a cyclically balanced budget.
C) crowding out.
D) crowding in.
E) a biennial balanced budget.
Cyclically Balanced Budget
A fiscal strategy where the government aims to balance its budget over the complete economic cycle, accumulating surpluses in boom periods and deficits during recessions.
Budget Deficits
A financial situation where a government's expenditures surpass its revenues.
Budget Surpluses
A situation where a government's revenue exceeds its expenditures over a specific period, indicating financial health.
- Differentiate among annual, cyclical, and functional balanced budgets along with their economic justifications.
Verified Answer
KM
Learning Objectives
- Differentiate among annual, cyclical, and functional balanced budgets along with their economic justifications.