8:12 41) Assume that the economy is in a recession andthere is a budget deficit. A strict balanced-budgetamendment that would require the Federalgovernment to balance its budget during a recessionwould be:A. Expansionary and worsen the effects of therecessionB. Contractionary and worsen the effects of therecessionC. Contractionary and counter the effects of therecessionD. Expansionary and counter the effects of therecession

Under the recession, the economy is below the full employment level or aggregate demand deficient in…

Answered: Assume that the economy is in a…

Assume that the economy is in a recession and ere is a budget deficit. A strict balanced-budget endment that would require the Federal vernment to balance its budget during a recession uld be:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

8:12 4
1) Assume that the economy is in a recession and
there is a budget deficit. A strict balanced-budget
amendment that would require the Federal
government to balance its budget during a recession
would be:
A. Expansionary and worsen the effects of the
recession
B. Contractionary and worsen the effects of the
recession
C. Contractionary and counter the effects of the
recession
D. Expansionary and counter the effects of the
recession

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