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In Year 1, the Actual Budget Deficit Was $150 Billion

Question 391

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.

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