At present, government spending is equal to government revenue. If the government chooses to reduce its spending, what is the most likely effect in the short run?
- Aa budget deficit
- Ba budget surplus
- Can increase in output
- Dan increase in tax revenue
Economics 0455 · IGCSE · Fiscal policy
At present, government spending is equal to government revenue. If the government chooses to reduce its spending, what is the most likely effect in the short run?