A major problem with the implementation of an annually balanced budget is that it:
a. allows the national debt to burgeon with chronic deficits.
b. relies upon government officials to budget for surpluses during economic booms in order to cover deficits during recessions.
c. requires annual revenues to match with outlays even during times of war, when there is a sudden increase in military expenditures.
d. magnifies the fluctuations in the business cycle.
e. dampens swings in the business cycle.
Question 2
The poverty line:
a. separates those on welfare from those not on welfare.
b. equals three times an economy food budget.
c. equals the median income level.
d. all of these.
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