Multiple Choice
If there is a constitutional requirement to maintain a balanced budget, then during a recession when tax revenues are shrinking, the government will have to implement
A) contractionary fiscal policy.
B) no change in fiscal policy.
C) expansionary fiscal policy.
D) countercyclical fiscal policy.
Correct Answer:
Verified
Correct Answer:
Verified
Q39: An expansionary fiscal policy is shown as
Q40: When Social Security contributions have exceeded payouts
Q41: Which of the following represents the most
Q42: In a certain year, the aggregate amount
Q43: To track the public debt over time
Q45: The cyclically adjusted budget deficit for the
Q46: The American Recovery and Reinvestment Act of
Q47: A decrease in taxes is one way
Q48: Expansionary fiscal policy during a recession means
Q49: The actual budget may be in deficit