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

See similar textbooks

Related questions

Q: This is practice and I need it explained in detail please.

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: What are the excel formulas used

A: From equation 1 The short-run production function is q=-0.6L3+18L2+10L Cost function: C(L)=100L+800…

Q: d. Assuming no trading between the two, if both countries wanted to have equal numbers of tons of…

A: d) In the absence of commerce, each country would want to consume the same quantity of granite and…

Q: High quality information gruarantees that every decisions made will be a successful one that…

A: High-quality information refers to information that is: Accurate Complete Unique Consistent These…

Q: What cultural aspects (language, religion, customs) a company must have in the area of technology

A: Technology and culture seems growing with changes in centuries. Its moving together. Technology has…

Q: What benefits are their in operating a business to consumer online business model for consumers and…

A: The objective of this question is to understand the benefits of operating a business to consumer…

Q: not use ai please

A: Please send the question. so I can answer your question more precisely and correctly.If you are…

Question

Not Chat GPT answer will dislike. Hand written not allowed.

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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Defining budget deficit

VIEW

Step 2: Chosing the correct option

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is the main reason for employing expansionary fiscal policy during a recession?
When governments run budget surpluses, what is done with the extra funds?
Under what general macroeconomic circumstances might a government use expansionary fiscal policy? When might it use contractionary fiscal policy?
Which fiscal policy would make a budget surplus smaller or a budget deficit larger? a. an increase in government purchases of goods and services b. lower government transfers c. lower interest rates d. higher taxes
A. Calculate the levels of consumption and savings that occurs when the economy is in equilibrium. B. Computer the government budget deficit in this economy. C. If government spending in banana land increases by $1000 what is the amount of the increase in equilibrium output? D. If taxes in banana land decrease by $1000 what is the new equilibrium output in this economy? E. To keep the government budget balanced, of both government spending and taxes in banana land increase by $1000 what is the change in equilibrium income level?
The table below presents the tax revenue and spending for the government over five years. a. Under the "Budget Amount" column calculate the annual budget outcome. Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. b. Under the "Budget" column determine whether the annual budget outcome is a budget surplus, budget deficit, or a balanced budget. Government Revenue and Spending Tax Revenue (billions of dollars) $100 400 800 600 200 Year 1 2 3 4 5 Spending (billions of dollars) $300 600 800 200 100 Budget Amount (billions of dollars) Budget (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) a. Under the "Budget Amount" column calculate the annual budget outcome. b. Under the "Budget" column determine whether the annual budget outcome is a budget surplus, budget deficit, or a balanced budget.
The stock of government debt will continue to rise unless the government. a. Increases its taxes. b. Runs a budget surplus. c. Runs a budget deficit. d. Decreases the size of its transfers. e. Decreases its expenditures.
An amendment to the Texas Constitution requires a balanced budget. This means that _____. A. any increase in government spending must be offset by a decrease in the total funds allocated to the General Revenue budget B. the legislature cannot approve a budget if it exceeds the projected revenues for the state by more than 30 percent C. the legislature cannot approve a budget if it exceeds the projected revenues for the state by more than 10 percent D. any increase in government spending must be offset by an increase in revenue and/or cuts in spending elsewhere in the budget
What is the concept of a budget deficit? A. Government spending exceeds government revenue B. Government revenue exceeds government spending C. Government spending is equal to government revenue D. Government debt is reduced to zero
Do
If the budgetary deficit is 20 billion and borrowing and other liabilities are 30 billion find the value of fiscal deficit?
Fiscal stance refers to: Select one: A. A government that takes a tough stance when it comes to running the country’s finances B. A government that is running a budget deficit C. A government that is running a budget surplus D. Whether a government is pursuing an expansionary or contractionary fiscal policy