A Balanced Budget Would Require That When Real GDP Was

question 33

Multiple Choice

A balanced budget would require that when real GDP was growing rapidly,

• A)the government raise taxes or cut expenditures.This would increase the magnitude of economic fluctuations.
• B)the government raise taxes or cut expenditures.This would decrease the magnitude of economic fluctuations.
• C)the government cut taxes or raise expenditures.This would increase the magnitude of economic fluctuations.
• D)the government cut taxes or raise expenditures.This would decrease the magnitude of economic fluctuations.

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Definitions:

Mishap

An unforeseen accident or minor mistake resulting in damage or inconvenience.

Life Insurance Policy

A contract between an individual and an insurance company, where the insurer pays a designated beneficiary a sum of money upon the death of the insured person.

Beneficiary

A person or entity entitled to receive benefits from a will, trust, insurance policy, or other legal agreements.

Divorced

The legal dissolution of a marriage by a court or other competent body.