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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

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
MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section11.B: Algebraic Treatment Of Taxes And Fiscal Policy
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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
Transcribed Image Text: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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