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Which Statement Does NOT Refer to a Potential Problem Associated

Question 25

Multiple Choice

Which statement does NOT refer to a potential problem associated with cyclically balancing the federal budget?


A) Different phases of the business cycle are not of equal length or severity.
B) Forecasting the turning point of the economy is very difficult.
C) Most economists agree that the federal budget should be balanced annually to avoid adding to the deficit.
D) Politicians find it difficult to cut spending or raise taxes.

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