A Balanced Budget Would Require That When Real GDP Was

question 33

Multiple Choice

A balanced budget would require that when real GDP was growing rapidly,

• A)the government raise taxes or cut expenditures.This would increase the magnitude of economic fluctuations.
• B)the government raise taxes or cut expenditures.This would decrease the magnitude of economic fluctuations.
• C)the government cut taxes or raise expenditures.This would increase the magnitude of economic fluctuations.
• D)the government cut taxes or raise expenditures.This would decrease the magnitude of economic fluctuations.

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Definitions:

Dense Connective Tissue

A type of connective tissue with high levels of collagen fibers, providing strength and support to structures such as tendons and ligaments.

Collagen

A fibrous protein that provides strength and elasticity to skin, bones, cartilage, and connective tissues.

Blood Clot

A gel-like mass formed by platelets and fibrin in the blood to stop bleeding and facilitate healing of injured tissues.

Fibrin

A protein involved in blood clotting, forming a fibrous mesh that impedes the flow of blood at a site of injury.