Question
A falling GDP leads to a tax receipt decline and moves the government's budget from Blank______ to Blank______.
Multiple choice question.
inflation; recession
surplus; deficit
deficit; surplus
recession; inflation
Multiple choice question.
inflation; recession
surplus; deficit
deficit; surplus
recession; inflation
Answers
GPT-4o mini
The correct answer is: **surplus; deficit.**
A falling GDP typically results in lower tax receipts, which can lead to a budget deficit if the government's expenditures exceed its revenues.
A falling GDP typically results in lower tax receipts, which can lead to a budget deficit if the government's expenditures exceed its revenues.