It Is Likely That a Constitutional Amendment That Required the Government

question 163

Multiple Choice

It is likely that a constitutional amendment that required the government always to run a balanced budget would

• A)contribute to a more stable level of output.
• B)mitigate the crowding-out effect.
• C)eliminate the economy's automatic stabilizers.
• D)result in zero percent inflation.

Grasp the effects of fiscal policies, including tax cuts and government expenditures, on the economy.

Identify the role and challenges of central banking and monetary policy in managing the economy.

Understand the debate between using monetary policy rules versus discretionary policy.

Recognize the complexities of the political business cycle and its impact on economic policies.

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