The actual budget deficit of the federal government in 2018 was about $3.9 percent of GDP. On the basis of this information, it
A) can be concluded that the economy was faced with serious inflation in 2018.
B) cannot be determined whether the government engaged in expansionary or contractionary fiscal policy in 2018.
C) can be concluded that fiscal policy was contractionary in 2018.
D) can be concluded that fiscal policy was expansionary in 2018.
Correct Answer:
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