Question

Federal budget deficits generally grow during recessions because

Answer 1

Because the social expenditure increases

Step-by-step explanation:

When the economy is in recession, the government revenue brought by taxes decreases. But the demand for welfare, social expenditure increases dramatically (education, health, etc.). Since a Recession is a sign of a stagnant economy.

If the Federal Budget has already been facing a deficit then, generally, this situation will increase its debts.