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Figure 15-9 below shows the budget deficit as a percentage of GDP in the United States from 1964 to 2014 (You can ignore the cyclically
Figure 15-9 below shows the budget deficit as a percentage of GDP in the United States from 1964 to 2014 (You can ignore the cyclically adjusted budget deficit and focus on the actual budget deficit). Assuming that potential output was unchanged, use this figure to determine which of the years from 1990 to 2013 the government used expansionary fiscal policy and in which years it used contractionary fiscal policy
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