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    Exam 13: Fiscal Policy Appendix Taxes and the Multiplier
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    If the Economy Is Operating Well Below Potential Output, the Cyclically
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If the Economy Is Operating Well Below Potential Output, the Cyclically

Question 261

Question 261

Multiple Choice

If the economy is operating well below potential output, the cyclically adjusted budget balance deficit is _____ than the actual budget balance.


A) smaller than
B) larger than
C) unrelated to
D) the same as

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