Question 29 (1 point) Suppose the government wants to maintain a balanced budget

Question

Question 29 (1 point) Suppose the government wants to maintain a balanced budget. To achieve this goal, when the economy falls into recession government would need to- taxes, which would cause aggregate demand to -. O A) increase; decrease O B) increase; increase O C) decrease; decrease O D) decrease; increase Save Question 30 (1 point) If the federal government's expenditures are less than its tax revenues, then O A) a budget surplus results. O B) a budget deficit results. c) the budget is balanced. 0 D) No conclusion can bedrawn here regarding the budget surplus or deficit without information regarding government purchases versus other outlays. Save

Explanation / Answer

Q29
Option D
the decrease in taxes will increase AD so the economy come back to full employment
Q30
Option A
budget surplus=taxes-spending
if the spendig is less than taxes then the solution is positive means there is the surplus budget.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.