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The cyclical deficit rises during economic expansions. True or false

2 Answers

4 votes

Answer:

False

Step-by-step explanation:

User Lukejanicke
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3 votes

Answer:

false

Step-by-step explanation:

Historically, the deficit has been highly countercyclical, meaning that it rises during economic slowdowns and falls during expansions. This countercyclicality is driven by both the spending side and revenue side and by both discretionary or “activist” policies and automatic or “passive” policies

User Jeffkmeng
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