Multiple Choice
The cyclically adjusted surplus as a percentage of GDP is 1 percent in Year 1.This surplus becomes a deficit of 2 percent of GDP in Year 2.It can be concluded that from Year 1 to Year 2,
A) fiscal policy turned more expansionary.
B) fiscal policy turned more contractionary.
C) GDP increased.
D) GDP decreased.
Correct Answer:
Verified
Correct Answer:
Verified
Q195: If taxation becomes more progressive, the built-in
Q217: Discretionary fiscal policy refers to<br>A)any change in
Q218: Automatic stabilizers smooth fluctuations in the economy
Q219: The largest proportion of the U.S.public debt
Q220: When the economy is at full employment,<br>A)one
Q221: The so-called negative taxes are better known
Q223: The group of three economists appointed by
Q225: The intent of contractionary fiscal policy is
Q227: Through the start of 2009, Social Security
Q295: The "stimulus package" that the government implemented