With No Change in Fiscal Policy, the Budget

question 81

Multiple Choice

With no change in fiscal policy, the budget

• A)will run a surplus during a recession and a deficit during a boom.
• B)deficit will rise during a recession and fall during a boom.
• C)deficit will fall during a recession and rise during a boom.
• D)will remain unchanged by adverse economic conditions.

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Definitions:

Controlling

A management function that involves monitoring and evaluating performance to ensure that organizational objectives are achieved efficiently and effectively.

Operating Results

The summary of a company's revenues, expenses, and net income or loss for a specific period of time, reflecting its business performance.

Expected Results

Anticipated outcomes or performance measurements, based on planned activities, goals, or strategies.

Management Process

The five basic management functions of (1) planning, (2) directing, (3) controlling, (4) improving, and (5) decision making.