running a deficit helps to increase spending for public assistance programs

budget deficits reduce tax costs for American w

mental resources.

Why does a deficit automatically emerge during an economic recession?

$+100$ During a recession, tax revenues increase while transfer payments decrease.

Recessions force producers to increase prices, causing a budget deficit.

Consumers reduce their spending during recessions.

possible

During a recession, tax revenues decrease while transfer payments increase.

$+85$

$+100$