A budget deficit is always a negative indicator for an economy.Question 11Answera.TRUEb.FALSE

Government budget deficits tend toGroup of answer choicesincrease in recessionsNone of the others is correct.remain in balance irrespective of business cyclesincrease when there is an expansionary output gap.decrease in recessions

The government is running a budget surplus while the economy is at its potential level. This implies the government is running a __________ and decreasing its __________. structural surplus; net debt structural surplus; net asset structural deficit; net debt balanced budget; net asset structural deficit; net asset

Suppose the economy is currently in a boom and the government is running a structural budget deficit. This meansGroup of answer choicesthere cannot be an actual budget surplusthere cannot be an actual budget deficitthere is a cyclical budget surplusthere is a cyclical budget balance of zero

Suppose the economy is in a boom and the government is running a budget deficit. This implies the government is running a __________ and ___________ its net debt. structural deficit; increasing structural surplus; decreasing structural deficit; does not change structural surplus; increasing structural deficit; decreasing

An increase in the budget deficit can be beneficial for the economy," said a member of Congress during the November budget debates. Could this statement be true?