Question

A balanced economy generally has which economic stance?

Answer 1

Neutral because it means balanced

Answer 2

A balanced economy usually has a spending stance compatible with its capabilities. In other words, an economy is balanced when its fiscal framework is sustainable and healthy, that is, the economy does not spend more than it collects.

The fiscal balance is one of the macroeconomic bases for maintaining the financial health of a country. Countries that spend more than they collect, incur deficits, and are more prone to economic crises. Countries with fiscal equilibrium can sustain long-term economic growth sustainably, so they are balanced economies.