Asked by
lalith kumar
on Nov 11, 2024
Verified
Which of the following is true of an annually balanced federal budget?
A) Most economists agree that the federal government should balance its budget just as each household does.
B) Such a policy would require the government to increase its spending when tax receipts decrease.
C) Such a policy became popular between the 1930s and 1960s.
D) Such a policy guarantees that the economy is its potential level.
E) Such a policy could worsen a contractionary gap.
Annually Balanced Budget
A budget in which revenues and expenditures are equal within a single fiscal year, ensuring no deficit or surplus.
Contractionary Gap
A situation where the aggregate output in an economy is below its potential output, leading to unemployment and underutilized resources.
Government Spending
The total amount of public spending by the government, including expenditures on public services, healthcare, education, and infrastructure.
- Examine the influence of public spending and taxation policies on economic trends.
- Evaluate the consequences of diverse fiscal philosophies on economic steadiness and development.
Verified Answer
DP
Learning Objectives
- Examine the influence of public spending and taxation policies on economic trends.
- Evaluate the consequences of diverse fiscal philosophies on economic steadiness and development.