Suppose the Government Wants to Maintain a Balanced Budget

question 256

Multiple Choice

Suppose the government wants to maintain a balanced budget.To achieve this goal,when the economy falls into recession government would need to ________ taxes,which would cause aggregate demand to ________.

• A)decrease; decrease
• B)decrease; increase
• C)increase; decrease
• D)increase; increase

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Definitions:

Group Conformity

The phenomenon where individuals adjust their behavior or attitudes to align with the norms of a group.

Group Norms

Shared expectations within a group about how members should behave.

Group Conformity

The process of aligning one's attitudes, beliefs, and behaviors to those of the group due to real or imagined pressure.

Accountant

A professional who practices accounting, which involves recording, classifying, and analyzing financial transactions.