Provide the cyclical nature of government tax revenues and, Ask an Expert

Economics

Budget deficit or surplus vary over the business cycle

One alternative to balancing the budget annually or cyclically is to produce a government budget that would be balanced if the economy were at potential output. Given the cyclical nature of government tax revenues and spending, how would the resulting budget deficit or surplus vary over the business cycle?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9210327

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