Assume the Economy Is in a Recession and Has a Budget

question 60

Multiple Choice

Assume the economy is in a recession and has a budget deficit.Ceteris paribus,if the economy starts expanding,automatic stabilizers will cause

• A)A decrease in tax revenues.
• B)An increase in government spending.
• C)A decrease in the budget deficit.

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Definitions:

Society of the Cincinnati

An exclusive hereditary society formed by officers of the Continental Army in 1783 to preserve the ideals and fellowship of the American Revolutionary War.

Chisholm v. Georgia

Chisholm v. Georgia was a landmark 1793 Supreme Court case that established the right of individuals to sue states in federal court, later leading to the Eleventh Amendment limiting such suits.

Supreme Court

The highest judicial body in a country or jurisdiction, often having the final say in matters of law and constitutionality.