During World War II, the economic boom that raised U.S. equilibrium income above potential income:

Question

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The economic boom during World War II raised U.S. equilibrium income above potential income, which would have increased tax revenues and decreased government spending on unemployment benefits and other social services, thus reducing or eliminating any cyclical deficit. Cyclical deficits occur when an economy is operating below its potential output, leading to lower tax revenues and higher government spending.

During World War II, the Economic Boom That Raised U