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Which of the Following Is TRUE

Question 31

Multiple Choice

Which of the following is TRUE?


A) When the economy is in recession,the cyclically adjusted budget deficit is lower than the reported deficit.
B) In periods of economic expansion,the cyclically adjusted budget deficit is lower than the reported deficit.
C) The reported budget deficit always equals the cyclically adjusted budget deficit with automatic stabilizers during recessions.
D) The reported budget deficit always equals the cyclically adjusted budget deficit with automatic stabilizers during expansions.

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