Which of the Following Is True of an Annually Balanced

question 54

Multiple Choice

Which of the following is true of an annually balanced federal budget?

• A)Most economists agree that the federal government should balance its budget just as each household must do.
• B)Such a policy would require government to increase its spending when tax receipts fell.
• C)Such a policy became popular between the 1930s and 1960s.
• D)Such a policy would guarantee that the economy always remained at its potential level.
• E)Such a policy could worsen a contractionary gap.

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Definitions:

Major Depression

A psychiatric disorder whereby an individual experiences a sustained depressive mood or disinterest in activities, greatly impairing their day-to-day life.

Cognitive Reactivity

The tendency of an individual's cognitive processes to be influenced by emotional states, often leading to exaggerated negative thoughts in response to mood changes.

Differential Activation

A concept in psychology that refers to the way certain stimuli can activate different emotions, behaviors, or thoughts depending on an individual's current state or context.

Cognitive Fusion

A concept in psychotherapy referring to the blending of thoughts and experiences until they are not distinct, often leading to increased distress and less effective coping.