Which of the following statements is most accurate about fiscal policy since the end of the Great Recession?
A) The cyclically adjusted budget remained in deficit, but those deficits became smaller from 2009 to 2015, so fiscal policy became contractionary.
B) The cyclically adjusted budget remained in deficit and those deficits became smaller from 2009 to 2015, but fiscal policy remained expansionary.
C) Cyclically adjusted deficits rose steadily from 2009 to 2015, so fiscal policy became increasingly expansionary.
D) Cyclically adjusted deficits that occurred in 2009 eventually gave way to cyclically adjusted surpluses as the economy recovered.
Correct Answer:
Verified
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A) provided