An Annually Balanced Budget

question 93

Multiple Choice

An annually balanced budget:

• A)is the surest path to economic stability.
• B)is required by the U.S.Constitution.
• C)dampens cyclical swings by decreasing government spending during expansions and increasing it during recessions.
• D)accentuates cyclical swings by increasing government spending during expansions and reducing it during recessions.
• E)is a goal that has only been achieved twice in the past 5 years.

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Definitions:

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Operating Expenses

Costs associated with running the day-to-day operations of a business, such as rent, utilities, and payroll, but excluding costs related to production.

Revenue

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Denominator

The bottom number in a fraction that shows into how many equal parts the whole is divided.