3. In the current US economic situation, is it good economic policy to have a budget deficit? Explain why or why not.

4. Every year in Congress, someone introduces a bill that would require the US federal government to maintain a balanced budget at all times.

a. Explain the advantages of requiring the government to maintain a balanced budget.

b. Explain the problem that could arise if the government had to maintain a balanced budget at all times. (Hint: suppose the economy went into recession. What would happen to government revenues? What would the government then have to do to maintain a balanced budget? What effect would that have?)