Which One of the Following Statements About the Budget Deficit

question 228

Multiple Choice

Which one of the following statements about the budget deficit or surplus over the business cycle is correct?

• A) Automatic fluctuations in the budget deficit act as automatic stabilizers.
• B) When the economy is in an expansion, the budget deficit tends to increase.
• C) When the economy is in recession the budget surplus tends to increase.
• D) When GDP decreases, the budget deficit tends to decrease.