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    Economics Study Set 11
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    Exam 33: Fiscal Policy, Deficits, and Debt
  5. Question
    If the Cyclically Adjusted Budget Has a Zero Deficit but the Actual
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If the Cyclically Adjusted Budget Has a Zero Deficit but the Actual

Question 1

Question 1

True/False

If the cyclically adjusted budget has a zero deficit but the actual budget has a $100 billion deficit, then that means that the government is pursuing an expansionary fiscal policy.

Correct Answer:

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