Figure 15-9 shows the actual budget deficit and the cyclically adjusted budget deficit as a percentage of
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Figure 15-9 shows the actual budget deficit and the cyclically adjusted budget deficit as a percentage of GDP in the United States from 1970 to 2011. Assuming that potential output was unchanged, use this figure to determine which of the years from 1990 to 2009 the government used expansionary fiscal policy and in which years it used contractionary fiscal policy.
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Related Book For
Essentials Of Economics
ISBN: 9781429278508
3rd Edition
Authors: Paul Krugman, Robin Wells, Kathryn Graddy
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