Assume That a Government Has a Balanced Budget When the Economy

question 20

Multiple Choice

Assume that a government has a balanced budget when the economy is at full employment. If the economy then enters a recession, with no change in tax or spending laws, then the budget of the government is most likely to:

• A) remain balanced.
• B) be in deficit.
• C) be in surplus.
• D) be in either deficit or surplus, depending on the severity of the recession.

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Definitions:

Casual Today

The inclination towards adopting more informal and relaxed standards or approaches, particularly in contexts such as dress, communication, or workplace culture.

Reframing

A technique used to change the context or perspective on a situation or problem to see it in a new and different light.

Self-Talk

The internal dialogue that goes on within a person’s mind, which can influence feelings and behavior.

Visualization

Technique of imagining that you are performing a particular task in a certain way; positive visualization can enhance self-esteem.