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Balancing the government budget over the business cycle, rather than for each fiscal year, ... O a. Would stabilise the economy and produce an annual budget balance of zero. O b. Is a worthy idea but requires accurate forecasting and definition of the business cycle. O c. Is absolutely necessary for prudent management of the economy. O d. Would be procyclical. O e. Is the same as an annually balanced budget. If the government's budget deficit falls from one year to the next, but there has been no change in the government's fiscal policy, the change in the budget deficit can be explained by a... O a. Change in the stance of fiscal policy. O b. Rise in real GDP. O c. Rise in the primary budget deficit. O d. Rise in the cyclically adjusted deficit. O e. Rise in the real interest rate. Reducing the inflation rate from six percent to one percent causes a cumulative loss in real GDP of $30 billion, If potential GDP is $600 billion, the sacrifice ratio is... O a. 3 O b. 2 Oc. 1 O d. 4 Oe. 5