Multiple Choice
Without a change in discretionary fiscal policy, we would expect that if the economy goes into recession, then the
A) cyclically adjusted deficit and the actual deficit would both increase.
B) cyclically adjusted deficit and the actual deficit would both decrease.
C) cyclically adjusted deficit would stay the same while the actual deficit would increase.
D) cyclically adjusted deficit would increase while the actual deficit would stay the same.
Correct Answer:

Verified
Correct Answer:
Verified
Q13: The cyclically adjusted budget refers to<br>A)the inflationary
Q14: The economy is in a recession.The government
Q15: The effect of an increase in the
Q16: The flexibility of the price level tends
Q20: The operational lag of fiscal policy refers
Q21: In 2015, the U.S.public debt was about<br>A)$18.2
Q22: A decrease in government spending and a
Q166: Actions by the federal government that decrease
Q239: Which of the following is the best
Q329: Most of the U.S. public debt is