A Balanced Budget Would Require That When Real GDP Was

Multiple Choice

A balanced budget would require that when real GDP was growing rapidly,

A) the government raise taxes or cut expenditures.This would increase the magnitude of economic fluctuations.
B) the government raise taxes or cut expenditures.This would decrease the magnitude of economic fluctuations.
C) the government cut taxes or raise expenditures.This would increase the magnitude of economic fluctuations.
D) the government cut taxes or raise expenditures.This would decrease the magnitude of economic fluctuations.