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The Government Budget for the Country of Economia Is in Surplus

Question 238

Multiple Choice

The government budget for the country of Economia is in surplus in 2019, and in deficit in the following year, 2020.We can conclude that


A) the government must have raised tax rates or cut spending.
B) the government must have cut tax rates or increased spending.
C) the government fiscal policy did not change between 2015 and 2016.
D) the government is not making use of automatic stabilizers.
E) none of the above

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