AP® Macroeconomics

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Moderate

Recession: Balancing the budget

APMACR-3VSE1A

Economic policymakers should understand that during a recession, which of the following are likely to occur?

I. Decrease in tax revenues
II. Increase in budget deficits
III. Decrease in budget deficits

A

I only.

B

II only.

C

III only.

D

I and II only.

E

II and III only.