When the U.S.economy reached full employment in 2007, the cyclically adjusted deficit that year was âˆ'1.3 percent of GDP.From this information, we know that the
A) actual budget deficit must have been very close to 0 percent of GDP.
B) government implemented a contractionary fiscal policy that year.
C) actual budget deficit must have been very close to âˆ'1.3 percent of GDP.
D) government implemented a more expansionary fiscal policy from 2006 to 2007.
Correct Answer:
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