The Automatic Budget Surpluses and Budget Deficits That Occur in the Federal

question 143

Multiple Choice

The automatic budget surpluses and budget deficits that occur in the federal budget over the business cycle

• A)destabilize the economy.
• B)stabilize the economy.
• C)decrease potential GDP.
• D)increase potential GDP.

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Definitions:

Dividend Payments

Dividend payments are the distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders.

Cash Flows

The cumulative total of cash inflows and outflows in a company, influencing its liquid assets.

Revenue

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

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.