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 balanced-budget fiscal policy be counter-cyclical?
A) 2 and 3.
B) 3 only.
C) 4 only.
D) 3 and 4.
Correct Answer:

Verified
Correct Answer:
Verified
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