fed funds rate - 1 During a recession in the United States what happens automatically to tax revenues and government spending Taxes a Increase b

fed funds rate - 1 During a recession in the United States...

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1.During a recession in the United States, what happens automatically to tax revenues and government spending?TaxesGovernment Spending a.IncreaseIncreasesb.DecreaseDecreasesc.IncreaseDecreasesd.DecreaseIncreasese.DecreaseNo Change 2.Which of the following is a reason to be concerned about persistent budget deficits? Tackle the Test: Free-Response Questions (answer on loose leaf ) 1. Consider the information provided below for the hypothetical country of Zeta. Tax revenues = 2,000 Government purchases of goods and services = 1,500 Government transfers = 1,000 Real GDP = 20,000 Potential output = 18,000 a. Is the budget balance in Zeta positive or negative? What is the amount of the budget balance? b. Zeta is currently in what phase of the business cycle? Explain. c. Is Zeta implementing the appropriate fiscal policy given the current state of the

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