Maintaining a Balanced Budget During an Economic Recession Would Be

question 112

Multiple Choice

Maintaining a balanced budget during an economic recession would be the difficult to implement because:

• A) corporate income taxes would have to be raised in order to compensate for lower tax revenues.
• B) personal income taxes would have to be raised in order to compensate for lower tax revenues.
• C) transfer payments would have to be reduced in order to curb spending.
• D) all of the above

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Definitions:

Price

The amount of money expected, required, or given in exchange for goods or services.

Area

A measure of the extent of a two-dimensional figure or shape in a plane.

Price

The amount of money required to purchase a good or service, determined by factors such as supply, demand, and production cost.

Surplus

The amount of a good that is available exceeds the quantity demanded at the current price.