Asked by
Tyler Marquez
on Nov 16, 2024Verified
If the government faced a balanced budget rule, it would be forced to raise taxes or decrease spending during a recession.
Balanced Budget Rule
A fiscal policy regulation requiring that a government's spending does not exceed its income in a given period.
Recession
A period of economic decline across an economy lasting several months, typically recognized by a decrease in GDP, income, employment, and trade.
- Understand the functions of fiscal and monetary policies in maintaining economic stability.
Verified Answer
AC
Learning Objectives
- Understand the functions of fiscal and monetary policies in maintaining economic stability.
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