If the federal government uses its budget to shift aggregate demand in an attempt to manage the macroeconomy,it is likely that the budget will:
A) Always be balanced.
B) Always be in a deficit.
C) Always be in a surplus.
D) Often be unbalanced.

Question

Quizplus · Accepted Answer

The federal government often uses fiscal policy to influence the economy, which can lead to periods of both deficits and surpluses depending on whether the government is trying to stimulate or cool down the economy. This means the budget will often be unbalanced.

If the Federal Government Uses Its Budget to Shift Aggregate