identify number 4 of the cycle using the cycle drawn on the board * 1 point\nbust\nboom\nrecovery\npeak\nif…

identify number 4 of the cycle using the cycle drawn on the board * 1 point\nbust\nboom\nrecovery\npeak\nif government increases taxes which is true * 1 point\ndeficit increases leading to an increase in debt\nsurplus increases leads to a decrease in debt\ndeficit increases leads to a decrease in debt\ndeficit decreases leads to an decrease in debt

identify number 4 of the cycle using the cycle drawn on the board * 1 point\nbust\nboom\nrecovery\npeak\nif government increases taxes which is true * 1 point\ndeficit increases leading to an increase in debt\nsurplus increases leads to a decrease in debt\ndeficit increases leads to a decrease in debt\ndeficit decreases leads to an decrease in debt

Answer

Brief Explanations:

For the first question, without seeing the cycle on the board, it's hard to be certain, but in a business - economic cycle context, the typical phases are bust, recovery, boom, and peak. For the second question, when the government increases taxes, revenue increases. If government spending remains the same or decreases, the deficit (which is spending minus revenue) decreases. A decrease in the deficit can lead to a decrease in debt over time as less borrowing is needed.

Answer:

First question: No clear answer without seeing the cycle. Second question: deficit decreases leads to an decrease in debt