It Is Impossible for the Government to Maintain a Balanced

question 116

True/False

It is impossible for the government to maintain a balanced budget while using fiscal policy to eliminate a recessionary gap.
An increase in government spending paid for by a tax increase of equal size shifts aggregate demand to the right through the balanced budget multiplier.Therefore,it may be difficult,but not impossible,to maintain a balanced budget while using fiscal policy to eliminate a recessionary gap.

---

Definitions:

Gulf Of Tonkin Resolution

Legislation passed by Congress in 1964 in reaction to supposedly unprovoked attacks on American warships off the coast of North Vietnam; it gave the president unlimited authority to defend U.S. forces and members of SEATO.

Silent Majority

A term referring to a large group of people in a society who do not express their opinions publicly and are considered to hold moderate views.

Loving V. Virginia

A landmark 1967 Supreme Court case that declared state laws prohibiting interracial marriage unconstitutional.

Nation Of Islam

A religious and socio-political organization founded in the United States in 1930, which advocates for the improvement of the spiritual, mental, social, and economic condition of African Americans.