2. Budget philosophies There are several important philosophies regarding budget balances. One way in which they differ is in terms of the time span cwer which the budget should be balanced. Another difference among budget philosophies involves whether the budget balance is as important as other economic goals. Which of the following budget ph losophies advocates ensuring that the economy reaches its potential output? C) Cyclically balanced budget o Functional finance Ily balanced budget A major ptTblem with the implementation of this philosophy is that it: C) Magnifies business cycle fluctuations C) Can allow the national debt to burgeon with chlTnic deficits C) Relies upon government officials to budget for surpluses during boom times in order to ccwer deficits during recessions