A balance budget is when:Question 10Answera.If the expenditure estimates in a budget outweigh the revenue projectionsb.Revenue projection and expected expenditures in a budget are presumed equal.c.If the expected income outweigh projected expenditure by slight mergind.Presumed excess of revenue projections over estimate expenditu

The purpose of identifying the structural budget balance is to identifyGroup of answer choicesthe part of the budget balance which reflects where the economy is at in the business cyclethe effect of automatic stabilizers on total tax revenuethe effect of the level of income on total tax revenuenone of the other alternatives are correct

When revenue pojections and expected expenditures in a budget are presumed equal, it is called:Question 5Answera.Balanced Budgetb.Surplus Budgetc.Average Budgetd.Deficit Budget

The budget balance = ______ - government spending.Multiple choice question.excise dutiestransfer paymentspersonal income taxnet tax revenue

Assess whether a government should always aim to balance its budgetrather than have a budget surplus or a budget deficit

Consider the Keynesian income-expenditure model with a government sector but no foreign sector. Assume that taxation is partly endogenous and dependent on the level of income. Suppose that the government increases its expenditure by $200 million and also increases the exogenous component of taxation by $200 million. Taking the budget balance as being equal to total taxes less government expenditure, which of the following statements is correct?Group of answer choicesThe equilibrium level of income will increase by less $200 million and the budget balance would improveThe equilibrium level of income will decrease but the budget balance would actually improveThe equilibrium level of income will increase by more than $200 million and the budget balance will be unchangedThe equilibrium level of income will increase by $200 million and the budget balance will be unchanged.