The key to assessing whether fiscal policy is expansionary or not is to observe the change in the cyclically adjusted budget balance.

Name: The key to assessing whether fiscal policy is expansionary or not is to observe the change in the cyclically adjusted budget balance.
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The cyclically adjusted budget balance removes the effects of the economic cycle, allowing for a clearer assessment of the underlying fiscal policy stance.

The Key to Assessing Whether Fiscal Policy Is Expansionary or Not