Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
When economies are in recessions, they tend to experience _____ and when they are in expansions, they are more likely to run _____
When economies are in recessions, they tend to experience _____ and when they are in expansions, they are more likely to run _____. For this reason, it may be useful to separate out the effects of discretionary fiscal policy using the _____.
a) Deficits; surpluses; cyclically balanced budget,
b) Surpluses; deficits; cyclically balanced budget,
c) Deficits; debts; cyclically balanced budget,
d) Inflation; deflation; monetarily balanced budget,
e) Disinflation; deflation; monetarily balanced budget.
Expert Solution
A is the correct answer. In a recession, the economy is more likely to run a deficit due to the contraction in GDP. In an expansion, it is more likely to run a surplus. A cyclically balanced budget does not balance every year but is in balance over a full business cycle and recognizes that deficits are followed by surpluses and vice versa.
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
