An Annually Balanced Budget

question 93

Multiple Choice

An annually balanced budget:

• A)is the surest path to economic stability.
• B)is required by the U.S.Constitution.
• C)dampens cyclical swings by decreasing government spending during expansions and increasing it during recessions.
• D)accentuates cyclical swings by increasing government spending during expansions and reducing it during recessions.
• E)is a goal that has only been achieved twice in the past 5 years.

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Definitions:

Productive Efficiency

A situation where a good or service is produced at the lowest possible cost.

Technological Advance

Technological advance refers to the progression and innovation in technology that often leads to improved efficiency, production capabilities, and new product developments.

Preferred Mix

The optimal combination of goods and services an economy should produce, taking into account consumer preferences, resource availability, and socio-economic objectives.

Venture Capital

Financing provided by investors to startup companies and small businesses with perceived long-term growth potential.