Balancing the Government's Budget Each Year Would

question 4

Multiple Choice

Balancing the government's budget each year would

• A) allow tax rates to remain constant from year to year
• B) reduce uncertainty over future tax rates and net income
• C) exacerbate recessions
• D) stabilize short run GDP
• E) generate smaller economic distortions than a policy of countercyclical deficits and surpluses

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Definitions:

Machinery Use

Refers to the employment of machines to perform work or tasks, often used to increase efficiency, productivity, and precision in industries and agriculture.

Labor Organization

A group, often in the form of a union, that represents the collective interests of workers in negotiations with employers regarding wages, working conditions, and rights.

Mechanization

The process of changing from working largely or exclusively by hand or with animals to doing that work with machinery.

Cotton Mills

Factories equipped for the processing and manufacturing of cotton into yarn or fabric, pivotal to the Industrial Revolution.