Which of the following is not part of a cyclically-balanced-budget fiscal policy?
A)Budget deficits in periods of a recessionary gap.
B)Budget surpluses in periods of an inflationary gap.
C)A balanced budget over the life of the business cycle.
D)Budget deficits during expansionary phases.

Question

Quizplus · Accepted Answer

Cyclically-balanced-budget fiscal policy involves adjusting budget policies to counteract economic cycles, with deficits during recessions and surpluses during booms to stabilize the economy. Budget deficits during expansionary phases contradict this approach, as surpluses, not deficits, should occur in such periods.

Which of the Following Is Not Part of a Cyclically-Balanced-Budget