The American Recovery and Reinvestment Act of 2009 is a clear example of
A) nondiscretionary ﬁscal policy that made the cyclically adjusted budget become more positive.
B) nondiscretionary ﬁscal policy that made the cyclically adjusted budget become more negative.
C) discretionary ﬁscal policy that made the cyclically adjusted budget become more positive.
D) discretionary ﬁscal policy that made the cyclically adjusted budget become more negative.

Question

Quizplus · Accepted Answer

The American Recovery and Reinvestment Act of 2009 is an example of discretionary fiscal policy aimed at stimulating the economy during a downturn, which resulted in the cyclically adjusted budget becoming more negative due to increased government spending and tax cuts.

The American Recovery and Reinvestment Act of 2009 Is a Clear