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There is a relationship between budget deficits and the health of the economy, but is certainly not a perfect one. There can be massive budget deficits when the economy is doing quite well - the past few years of the United States being a prime example.
That being said, government budgets tend to go from surplus to deficit (or existing deficits become larger) as the economy goes sour. This typically happens as follows:
Because of factors one, the government receives less money from taxpayers, while factors two and three, the government spends more money. Money starts flowing out of the government faster than it comes in, causing the government's budget to go into deficit.
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Stimulus
yes
Tax revenue changes when the economy goes into a recession. When there is a recession, the government increases tax revenue. The government does this because less people are spending money.
Spending increases demand and can encourage economic growth.
The worst stocks that you can buy during a recession is the most expensive stocks on the market. The prices will continue to drop as you lose even more money so the safest option is to avoid buying stocks until the recession recovers a bit.
Stimulus
recession
yes
recession
Tax revenue changes when the economy goes into a recession. When there is a recession, the government increases tax revenue. The government does this because less people are spending money.
Spending increases demand and can encourage economic growth.
The government is giving people money
recession
recession
railroad companies
railroad companies
railroad companies