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Without a Change in Discretionary Fiscal Policy, We Would Expect

Question 18

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.

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