long-run framework, budget surpluses: Select correct and explain why its correct should be run whenever output dips below potential output. should never be run since they crowd out investment in the short run. are better than budget deficits over the long run because unlike budget deficits, they increase saving and investment. should be run on a permanent basis since they boost saving and
long-run framework, budget surpluses: Select correct and explain why its correct should be run whenever output dips below potential output. should never be run since they crowd out investment in the short run. are better than budget deficits over the long run because unlike budget deficits, they increase saving and investment. should be run on a permanent basis since they boost saving and
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section11.B: Algebraic Treatment Of Taxes And Fiscal Policy
Problem 3TY
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. In the long-run framework, budget surpluses: Select correct and explain why its correct
- should be run whenever output dips below potential output.
- should never be run since they crowd out investment in the short run.
- are better than budget deficits over the long run because unlike budget deficits, they increase saving and investment.
- should be run on a permanent basis since they boost saving and investment and stimulate
economic growth .
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