Question

is the appropriate budget policy during recession
0 Balanced Budget
O Surplus Budget
Neutral Budget
Delicit Budget​

Answer 1

Answer:

In financial planning or the budgeting process, a balanced budget means that revenues are equal to or greater than total expenses

Answer 2

There are three kinds of budget :-

• balanced budget
• surplus budget
• deficit budget

Deficit budget :-

In the case of recession, we have already seen that revenue falls while expenditures rise thereby creating a deficit. In order to balance the budget, government must raise more revenue (by increasing taxes) and cut expenditures. Both of these actions will lower disposable income.

Surplus budget :-

Budget deficits and surpluses can help to stabilize the economy. If the economy enters a recession taxes will fall as income and employment fall. ... These changes work to lower the level of consumption and hence the level of aggregate demand. Thus, the surplus works to stabilize the economy during inflationary periods.

Neutral budget :-

“Budget Neutral” Advocates of new government programs often promise that their programs are “budget neutral” — meaning that adoption of these programs will not increase net government spending. A recent example is the Child Rearing and Development Leave Empowerment (CRADLE) Act, proposed by Sens.