Greater the severity of recession, greater the actual budget deficit.

Name: Greater the severity of recession, greater the actual budget deficit.
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Question

Quizplus · Accepted Answer

During a recession, government revenues tend to decrease due to lower tax incomes from both individuals and businesses, while government spending often increases due to higher demand for unemployment benefits and other social services. This combination leads to a greater actual budget deficit.

Greater the Severity of Recession, Greater the Actual Budget Deficit