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Brandon Lusch6633
on Nov 11, 2024

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When budget deficits during recessions are covered by budget surpluses during expansions,it is called:

A) an annually balanced budget.
B) a cyclically balanced budget.
C) crowding out.
D) crowding in.
E) a biennial balanced budget.

Cyclically Balanced Budget

A fiscal strategy where the government aims to balance its budget over the complete economic cycle, accumulating surpluses in boom periods and deficits during recessions.

Budget Deficits

A financial situation where a government's expenditures surpass its revenues.

Budget Surpluses

A situation where a government's revenue exceeds its expenditures over a specific period, indicating financial health.

  • Differentiate among annual, cyclical, and functional balanced budgets along with their economic justifications.
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KM
Kenyon MollaNov 13, 2024
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