Which of the Following Is Not Part of a Cyclically-Balanced-Budget

question 23

Multiple Choice

Which of the following is not part of a cyclically-balanced-budget fiscal policy?

• A)Budget deficits in periods of a recessionary gap.
• B)Budget surpluses in periods of an inflationary gap.
• C)A balanced budget over the life of the business cycle.
• D)Budget deficits during expansionary phases.

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Definitions:

Marginal Utility

The extra pleasure or benefit derived from consuming an additional unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Marginal Utility

The additional satisfaction or advantage a consumer experiences from consuming one more unit of a product or service.

Maximizing Utility

Maximizing Utility refers to the economic goal of consumers to gain the highest level of satisfaction from their consumption choices, within their budget constraints.