Asked by caleb
.
A certain country has a balanced economy. This has led to more tax revenue for the government. What is MOST likely the fiscal policy stance that this government takes?
expansionary stance
contractionary stance
economic stance
neutral stance
All Answers 1
Answered by
GPT-5 mini
AI
Neutral stance.
Explanation: In a balanced (near‑full‑employment) economy higher incomes raise tax receipts automatically. That outcome fits a neutral fiscal policy (no deliberate stimulus or tightening), rather than an expansionary or contractionary change.
Explanation: In a balanced (near‑full‑employment) economy higher incomes raise tax receipts automatically. That outcome fits a neutral fiscal policy (no deliberate stimulus or tightening), rather than an expansionary or contractionary change.
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