question archive State true or false and justify your answer: The standardized budget measures what the Federal budget deficit or surplus would be at full employment output with existing tax and spending decisions
State true or false and justify your answer: The standardized budget measures what the Federal budget deficit or surplus would be at full employment output with existing tax and spending decisions
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State true or false and justify your answer:
The standardized budget measures what the Federal budget deficit or surplus would be at full employment output with existing tax and spending decisions.
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Answer: True
The standardized budget attempts to compare budgets across in a standardized way. It does this by looking at what the budget would be if the economy was operating at full employment. This removes the bias of unemployment insurance and economic activity. Thus, we can see what portion of the surplus or deficit is caused by economic conditions and what portion is caused by government decision.
