An Attempt to Maintain an Annually Balanced Budget Would

question 19

Multiple Choice

An attempt to maintain an annually balanced budget would

• A)destabilize the economy.
• B)cause output to remain at the full-employment level of real GDP.
• C)stabilize the economy if investment is unaffected by changes in government spending;otherwise the economy will tend to be destabilized.
• D)stabilize the economy.
• E)have no effect on the level of,or the fluctuations in,real GDP.

---

Definitions:

Imperative

Describes something that is absolutely necessary or required, often used in the context of commands or duties.

Integration Imperative

The perceived need or policy goal of integrating diverse groups into a cohesive and functioning society, emphasizing unity and cooperation.

Social System

Refers to a complex set of human relationships interacting in many ways and at multiple levels, including institutions, organizations, and individuals.

Action System

An organizational concept in sociology and systems theory used to describe and analyze social behaviors and structures.