Question
The cyclically adjusted deficit as a percentage of GDP is 1 percent in year 1. This deficit becomes a surplus of 1 percent of GDP
The cyclically adjusted deficit as a percentage of GDP is 1 percent in year 1. This deficit becomes a surplus of 1 percent of GDP in year 2. It can be concluded from year 1 to year 2 that:
a) fiscal policy was expansionary.
b) the federal government is decreasing taxes.
c) the federal government is increasing spending.
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Economics Today
Authors: Roger LeRoy Miller
16th edition
132554615, 978-0132554619
