When an Economy's Government Goes from Running a Budget Deficit

question 7

True/False

When an economy's government goes from running a budget deficit to running a budget surplus, the economy's long-run growth prospects are improved.

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Definitions:

Hierarchy of Needs

A theory in psychology proposed by Abraham Maslow that outlines a five-tier model of human needs, from basic (physiological) to higher (self-actualization) needs.

Physiological Needs

Basic physical requirements for human survival, such as food, water, shelter, and sleep, posited as the foundation of Maslow's hierarchy of needs.

Abraham Maslow

A psychologist best known for creating Maslow's hierarchy of needs, a theory in psychology explaining human motivation.

Total Quality Management

A management approach focused on continuous improvement of processes in products and services, aiming for long-term success through customer satisfaction.