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Assume that the economy is in a recession and the government is experiencing a budget deficit. What happens if balanced-budget fiscal policy is used to
- Assume that the economy is in a recession and the government is experiencing a budget deficit. What happens if balanced-budget fiscal policy is used to eliminate the deficit?
- a. Unemployment will fall.
- b. GDP will rise.
- c. The deficit could be eliminated if GDP rose.
- d. Government spending will fall.
- e. NTR will remain unchanged
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Authors: Schermerhorn, John, Davidson, Paul, Factor, Aharon, Woods, Peter, Simon, Alan, McBarron, Ellen
6th Asia Pacific Edition
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