The Cyclically Adjusted Surplus in the U

Multiple Choice

The cyclically adjusted surplus in the U.S.went from +1.2 percent of GDP in 2000 to âˆ'1.2 percent of GDP in 2002.This suggests that the government during that period

A) cut taxes and/or increased spending.
B) increased taxes and/or cut spending.
C) wanted to rein in inflation.
D) did not change its discretionary fiscal policy.