Question 8 2 pts A "balanced budget" would require that when real GDP is contracting rapidly, O the government cut taxes or raise expenditures. This would decrease the magnitude of the business cycle. O the government raise taxes or cut expenditures. This would increase the magnitude of the business cycle. the government raise taxes or cut expenditures. This would decrease the magnitude of the business cycle. the government cut taxes or raise expenditures. This would increase the magnitude of the business cycle