What usually happen to government budget deficits in recessions and why? A. Budget deficits increase because tax revenues go up and government expenditures go down B. Budget deficits decrease because tax revenues go up and government expenditures go down C. Budget deficits increase because tax revenues go down and government expenditures go up D. Budget deficits decrease because tax revenues go down and government expenditures go up

What usually happen to government budget deficits in recessions and why? A. Budget deficits increase because tax revenues go up and government expenditures go down B. Budget deficits decrease because tax revenues go up and government expenditures go down C. Budget deficits increase because tax revenues go down and government expenditures go up D. Budget deficits decrease because tax revenues go down and government expenditures go up

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section11.B: Algebraic Treatment Of Taxes And Fiscal Policy

Problem 3TY

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What usually happen to government budget deficits in
recessions and why? A. Budget deficits increase
because tax revenues go up and government
expenditures go down B. Budget deficits decrease
because tax revenues go up and government
expenditures go down C. Budget deficits increase
because tax revenues go down and government
expenditures go up D. Budget deficits decrease
because tax revenues go down and government
expenditures go up

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