Multiple Choice
In Year 1, the actual budget deficit was $200 billion and the cyclically adjusted deficit was $150 billion.In Year 2, the actual budget deficit was $225 billion and the cyclically adjusted deficit was $175 billion.It can be concluded that fiscal policy from Year 1 to Year 2 was:
A) proportional.
B) inflationary.
C) contractionary.
D) expansionary
Correct Answer:
Verified
Correct Answer:
Verified
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