To identify whether fiscal policy is expansionary or contractionary,one should focus on the cyclical deficit.

Name: To identify whether fiscal policy is expansionary or contractionary,one should focus on the cyclical deficit.
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To identify whether fiscal policy is expansionary or contractionary, one should focus on the structural deficit, not the cyclical deficit, as the structural deficit reflects the underlying fiscal stance adjusted for the economic cycle.

To Identify Whether Fiscal Policy Is Expansionary or Contractionary,one Should