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When Current Tax Revenues Exceed Current Government Expenditures and the Economy

Question 73

Multiple Choice

When current tax revenues exceed current government expenditures and the economy is achieving full employment,


A) the cyclically adjusted budget has neither a deficit nor a surplus.
B) the cyclically adjusted budget may have either a deficit or a surplus.
C) the cyclically adjusted budget has a surplus.
D) the government is engaging in an expansionary fiscal policy.

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