Multiple Choice
Assume that the economy is in a recession and the government is experiencing a budget deficit.What happens if balanced-budget fiscal policy is used to eliminate the deficit?
A) Unemployment will fall.
B) GDP will rise.
C) NTR will remain unchanged.
D) The deficit could be eliminated if GDP rose.
E) Government spending will fall.
Correct Answer:
Verified
Correct Answer:
Verified
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