In Year 1, the actual budget deficit was $200 billion and the cyclically adjusted deficit was $150 billion.In Year 2, the actual budget deficit was $225 billion and the cyclically adjusted deficit was $175 billion.It can be concluded that fiscal policy from Year 1 to Year 2 became more

Question

Quizplus · Accepted Answer

The increase in both the actual and cyclically adjusted deficits from Year 1 to Year 2 indicates that fiscal policy became more expansionary, as the government increased spending or reduced taxes, leading to larger deficits.

In Year 1, the Actual Budget Deficit Was $200 Billion