Multiple Choice
If the economy is in a recessionary gap and the government attempts to balance the budget, the effect will be to
A) counteract the recession.
B) worsen and prolong the recession.
C) end the recession sooner.
D) increase the level of real GDP.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q20: Analysis indicates that the economy is in
Q21: Structural budget deficit is the hypothetical deficit
Q22: If national debt is owned by domestic
Q23: Explain why the portion of the national
Q24: The blame for failing to address the
Q26: The American national debt is an obligation
Q27: The crowding-in effect depends on the sensitivity
Q28: Which of the following is expected to
Q29: Crowding out can best be defined as<br>A)higher
Q30: Restrictive fiscal policies pull interest rates down.