Implementation of Cyclically Balanced Government Budgets

question 4

Multiple Choice

Implementation of cyclically balanced government budgets

• A)result in larger output gaps than with annually balanced budgets.
• B)requires precise prediction of potential GDP to pinpoint the stages of the business cycle.
• C)eliminates the need for built-in fiscal stabilizers.
• D)is easier with frequent changes in political power.
• E)is successfully practiced in Canada.

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Definitions:

Evergreen Broadleaf Trees

Evergreen broadleaf trees are types of trees that retain their green leaves throughout the year and possess broad, flat leaves rather than needle-like or scale-like leaves.

Rainfall

Precipitation in the form of water droplets that falls from clouds to the ground.

Eutrophication

Nutrient enrichment of an aquatic habitat.

Nutrient Concentrations

The amount of nutrients present in a given volume or mass of soil, water, or air, important for the growth and health of plants and animals.