Answer Happy

To maintain a balanced budget during a recession, what should the government do? Decrease taxes, increase transfer payments, and/or decrease government spending Increase taxes, decrease transfer payments, and/or decrease government spending. Decrease taxes, decrease government spending, and/or decrease transfer payments Increase taxes, increase spending, and/or increase transfer payments Question 9 Social Security payments are a form of and available to Progressive tax; to current retirees from funds from their past contributions Legislative lag; deducted from the higher-income groups to pay the lower income groups Contractionary fiscal policy; current older workers from funds deducted from younger workers O Automatic stabilizers; current retirees using funds from current contributions Question 10 Which of the following is a TRUE statement about arguments for and against requiring a balanced federal budget in the U.S.? One argument against a required balanced federal budget is that this mandate cannot be added to the Constitution, and therefore, could not be enforced. One argument in support of a required balanced federal budget maintains that having a balanced budget each year would make the impacts of economic recessions less severe. One argument against a required balanced federal budget is that sometimes it is necessary or beneficial to run large budget deficits in the short-run. One argument against a required balanced federal budget is that the government does not have macroeconomic responsibilities