Recession Growth Increasing government spending Decreasing government spending Decreasing taxes Increasing taxes Increasing the federal budget surplus Increasing the federal budget deficit Recession Growth Decreasing government spending Increasing government spending Increasing taxes Increasing the federal budget deficit Decreasing taxes Increasing the federal budget surplus

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 19E
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Question

Ruritania's economy has been enjoying positive but slowing growth. The Ministry of Economics is considering various policy measures. Place each option in the appropriate column according to whether it will most likely lead Ruritania on a business cycle path towards continued growth or into a recession.

Options:

Increase government spending.

Decrease government spending.

Increase taxes.

Decrease taxes.

Increasing the federal budget deficit.

Increasing the federal budget surplus.

 

Already tried the combinations in the attached pictures and got them wrong.

 

Recession
Growth
Increasing government spending
Decreasing government spending
Decreasing taxes
Increasing taxes
Increasing the federal budget surplus
Increasing the federal budget deficit
Transcribed Image Text:Recession Growth Increasing government spending Decreasing government spending Decreasing taxes Increasing taxes Increasing the federal budget surplus Increasing the federal budget deficit
Recession
Growth
Decreasing government spending
Increasing government spending
Increasing taxes
Increasing the federal budget deficit
Decreasing taxes
Increasing the federal budget surplus
Transcribed Image Text:Recession Growth Decreasing government spending Increasing government spending Increasing taxes Increasing the federal budget deficit Decreasing taxes Increasing the federal budget surplus
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