Suppose the Government Purposely Changes the Economy's Cyclically Adjusted Budget

Multiple Choice

Suppose the government purposely changes the economy's cyclically adjusted budget from a deficit of 0 percent of real GDP to a deficit of 3 percent of real GDP. The government is engaging in a(n)

A) expansionary fiscal policy.
B) contractionary fiscal policy.
C) neutral fiscal policy.
D) low-interest-rate policy.