Multiple Choice
In Year 1, the actual budget deficit was $150 billion and the cyclically adjusted deficit was $125 billion. In Year 2, the actual budget deficit was $130 billion and the cyclically adjusted deficit was $125 billion. It
Can be concluded that from Year 1 to Year 2,
A) real GDP decreased.
B) real GDP increased.
C) full employment was attained.
D) fiscal policy became less expansionary.
Correct Answer:

Verified
Correct Answer:
Verified
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