When an Economy's Government Goes from Running a Budget Deficit

question 7

True/False

When an economy's government goes from running a budget deficit to running a budget surplus, the economy's long-run growth prospects are improved.

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Definitions:

Small Business Owners

Individuals who own and operate a business that is typically smaller in scale compared to larger companies and corporations.

Economy

A system involving the production, distribution, and consumption of goods and services within a society or geographical area.

Government Intervention

Involvement by the government in the market to influence the allocation of resources and distribution of goods.

Efficient Results

Outcomes in which resources are allocated in a way that maximizes the net benefits to society.