Annually Balanced Government Budgets

question 90

Multiple Choice

Annually balanced government budgets

• A)would require the federal government to control both fiscal and monetary policy.
• B)would reduce the size of output gaps.
• C)would undermine the success of stabilization policies implemented by the government.
• D)are easy to implement due to the total control of government over its budget components in the short run.
• E)would allow the level of government expenditures to be independent of the changes in real GDP.

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