An Annually Balanced Budget

question 93

Multiple Choice

An annually balanced budget:

• A)is the surest path to economic stability.
• B)is required by the U.S.Constitution.
• C)dampens cyclical swings by decreasing government spending during expansions and increasing it during recessions.
• D)accentuates cyclical swings by increasing government spending during expansions and reducing it during recessions.
• E)is a goal that has only been achieved twice in the past 5 years.

---

Definitions:

Entrepreneurship

The process of designing, launching, and running a new business, which typically starts as a small business, such as a startup.

Price Supports

The term used to refer to price floors applied to farm commodities; the minimum price that the government allows farmers to receive for farm commodities like wheat or corn.

Economic Growth

An increase in the value of goods and services produced by an economy over time, typically measured as the percentage increase in real gross domestic product (GDP).

Capital Goods

Assets used by businesses to produce goods and services, such as machinery, buildings, and equipment, not intended for immediate sale but for productive use over time.