Please match each description with the appropriate approach to federal finance.Policymakers should reduce spending and increase taxes when the economy is growingin order to prevent "overheating". This approach was considered conventional wisdom until the advent of theGreat Depression. Policymakers should focus on keeping unemployment low and providing the peoplewith the public goods and services they want. If insisted upon, this approach would only worsen the economy during a recession. This approach ignores the impact of the budget on the business cycle. Policymakers should reduce spending and increase taxes when the economy is growingin order to prevent "overheating".This approach was considered conventional wisdom until the advent of theGreat Depression.Policymakers should focus on keeping unemployment low and providing the peoplewith the public goods and services they want.If insisted upon, this approach would only worsen the economy during a recession.This approach ignores the impact of the budget on the business cycle.Answer Bankannually balanced budgetfunctional financecyclically balanced budget

Hi. Since there are multiple questions we will answer only the first three questions.

Answered: Policymakers should reduce spending and…

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter12: Fiscal Policy, Incentives, And Secondary Effects

Section: Chapter Questions

Problem 13CQ

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Please match each description with the appropriate approach to federal finance.

Policymakers should reduce spending and increase taxes when the economy is growing
in order to prevent "overheating".

This approach was considered conventional wisdom until the advent of the
Great Depression.

Policymakers should focus on keeping unemployment low and providing the people
with the public goods and services they want.

If insisted upon, this approach would only worsen the economy during a recession.

This approach ignores the impact of the budget on the business cycle.

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