The cyclically-adjusted surplus as a percentage of GDP is 1 percent in Year 1. This surplus becomes a deficit of 2 percent of GDP in Year 2. It can be concluded from Year 1 to Year 2 that:
A) Fiscal policy turned more expansionary
B) Fiscal policy turned more contractionary
C) GDP increased
D) GDP decreased
Correct Answer:
Verified
Q55: Q56: Q57: The table below shows the cyclically-adjusted budget Q58: The cyclically-adjusted budget deficit in an economy Q59: The built-in stabilizers in the economy tend Q61: One timing problem in using fiscal policy Q62: The cyclically-adjusted surplus in the U.S. went Q63: Without a change in discretionary fiscal policy, Q64: If people expected that a fiscal policy Q65: The crowding-out effect suggests that:
A) Increases in
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