During the Great Depression,what appeared to be ________ fiscal policy was actually not when the ________ budget deficit or surplus is examined.
A)expansionary; actual
B)expansionary; cyclically adjusted
C)contractionary; actual
D)contractionary; cyclically adjusted

Question

Quizplus · Accepted Answer

During the Great Depression, what appeared to be expansionary fiscal policy due to increased government spending was actually not expansionary when examining the cyclically adjusted budget deficit or surplus. This adjustment accounts for the economic cycle, revealing the underlying fiscal stance more accurately.

During the Great Depression,what Appeared to Be ________ Fiscal Policy