Suppose that the economy is currently at potential gdp, and the federal budget is balanced. if the economy moves into recession, what will happen to the federal budget?

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asked Jun 12, 2018 229k views

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Suppose that the economy is currently at potential gdp, and the federal budget is balanced. if the economy moves into recession, what will happen to the federal budget?

Business
high-school

Eli Y asked

by Eli Y

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There there will be a budget deficit as government expenditures increase and tax revenues decrease.

Dtyler answered Jun 17, 2018

by Dtyler

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