Policymakers should reduce spending and increase taxes when the economy is growing in order to prevent "overheating". This approach was considered conventional wisdom until the advent of the Great Depression. Policymakers should focus on keeping unemployment low and providing the people with the public goods and services they want. If insisted upon, this approach would only worsen the economy during a recession. This approach ignores the impact of the budget on the business cycle. Answer Bank annually balanced budget functional finance cyclically balanced budget

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Please match each description with the appropriate approach to federal finance.
Policymakers should reduce spending and increase taxes when the economy is growing
in order to prevent "overheating".

This approach was considered conventional wisdom until the advent of the
Great Depression.

Policymakers should focus on keeping unemployment low and providing the people
with the public goods and services they want.

If insisted upon, this approach would only worsen the economy during a recession.

This approach ignores the impact of the budget on the business cycle.
 
 
 
 
 
 
 
 
 
Policymakers should reduce spending and increase taxes when the economy is growing
in order to prevent "overheating".
This approach was considered conventional wisdom until the advent of the
Great Depression.
Policymakers should focus on keeping unemployment low and providing the people
with the public goods and services they want.
If insisted upon, this approach would only worsen the economy during a recession.
This approach ignores the impact of the budget on the business cycle.
Answer Bank
annually balanced budget
functional finance
cyclically balanced budget
Transcribed Image Text:Policymakers should reduce spending and increase taxes when the economy is growing in order to prevent "overheating". This approach was considered conventional wisdom until the advent of the Great Depression. Policymakers should focus on keeping unemployment low and providing the people with the public goods and services they want. If insisted upon, this approach would only worsen the economy during a recession. This approach ignores the impact of the budget on the business cycle. Answer Bank annually balanced budget functional finance cyclically balanced budget
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