The Automatic Budget Surpluses and Budget Deficits That Occur in the Federal

question 143

Multiple Choice

The automatic budget surpluses and budget deficits that occur in the federal budget over the business cycle

• A)destabilize the economy.
• B)stabilize the economy.
• C)decrease potential GDP.
• D)increase potential GDP.

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Definitions:

Financial Institutions

Organizations that provide financial services, like banks, insurance companies, and stock exchanges.

Roads and Bridges

Essential infrastructure elements that facilitate the movement of people and goods, significantly impacting economic productivity and quality of life.

Economic Development

The process by which the economic well-being and quality of life of a nation, region, or local community are improved according to targets of growth and development.

Infrastructure

The fundamental facilities and systems serving a country, city, or area, including transportation, communication, water, and power systems.