Below Is Some Information About the State of the Budget

Multiple Choice

Below is some information about the state of the budget and the economy.
1.A budget deficit and a recessionary gap.
2.A budget deficit and an inflationary gap.
3.A budget surplus and a recessionary gap.
4.A budget surplus and an inflationary gap.
-Refer to the information above to answer this question.When would a counter-cyclical fiscal policy call for a decrease in government spending or a tax increase?

A) 1 only.
B) 1 and 4.
C) 2 only.
D) 2 and 4.