Multiple Choice
A constitutional amendment is passed that requires the government to have an annually balanced budget in the sense that changes in spending should be matched by equivalent changes in taxes.Should the government desire to increase GDP by $25 billion and meet the provisions of the law, it
A) cannot possibly reach its objective without breaking the law.
B) could increase spending by $25 billion and reduce taxes by $25 billion.
C) could increase spending by $25 billion and increase taxes by $25 billion.
D) could increase spending by $30 billion and increase taxes by $25 billion.
Correct Answer:

Verified
Correct Answer:
Verified
Q12: At equilibrium real GDP in a private
Q28: The equilibrium level of GDP is associated
Q30: If aggregate expenditures rise by $200 billion
Q31: If the dollar appreciates relative to foreign
Q34: Ca = 25 + 0.75 (Y -
Q35: Net exports are negative when<br>A)net exports exceed
Q37: A rightward shift of the investment demand
Q38: Which of the following would reduce GDP
Q54: If net exports decline from zero to
Q120: At the $180 billion equilibrium level of