10. Figure 32-3 shows the actual budget deficit and the cyclically adjusted budget deficit as a percentage...

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10. Figure 32-3 shows the actual budget deficit and the cyclically adjusted budget deficit as a percentage of GDP in the United States from 1970 to 2013. Assuming that potential output was unchanged, use this figure to determine which of the years from 1990 to 2011 the government used expansionary fiscal policy and in which years it used contractionary fiscal policy.

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Macroeconomics In Modules

ISBN: 978-1464139055

3rd Edition

Authors: Paul Krugman ,Robin Wells

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