Which of the Following Is a Potential Problem with a Cyclically

question 54

Multiple Choice

Which of the following is a potential problem with a cyclically balanced-budget fiscal policy?

• A)Governments can raise and lower spending levels at will.
• B)The life of the business cycle is often too short.
• C)Governments never cut taxes.
• D)Governments find it easier to cut spending in periods of an inflationary gap than raise spending in periods of a recessionary gap.
• E)Governments find it easier to raise spending in periods of a recessionary gap than cut spending in periods of an inflationary gap.

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Definitions:

Shame

A painful emotion resulting from the consciousness of something dishonorable, improper, or ridiculous, done by oneself or another.

Interdependence

A mutual reliance or influence between individuals or entities, often highlighting how they depend on each other for success or survival.

Fighting

Engaging in physical or verbal conflict or struggle against others.

Emmi Pikler

A Hungarian pediatrician and early childhood educator known for her innovative approach to infant and toddler care, emphasizing autonomous movement and respectful interactions.