If the economy were booming, we would expect Select one: A. government expenditure to be high and tax revenues to be lov causing a large budget deficit. B. government expenditure to be low and tax revenues to be high so that the public sector might be running a surplus. C. government expenditure to be low and tax revenues to be low so that the government could pay off the central government debt. D. none of the above.
If the economy were booming, we would expect Select one: A. government expenditure to be high and tax revenues to be lov causing a large budget deficit. B. government expenditure to be low and tax revenues to be high so that the public sector might be running a surplus. C. government expenditure to be low and tax revenues to be low so that the government could pay off the central government debt. D. none of the above.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:If the economy were booming, we would expect
Select one:
A. government expenditure to be high and tax revenues to be low
causing a large budget deficit.
B. government expenditure to be low and tax revenues to be high
so that the public sector might be running a surplus.
● C. government expenditure to be low and tax revenues to be low
so that the government could pay off the central government
debt.
D. none of the above.
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