Without a change in discretionary fiscal policy, we would expect that if the economy goes into recession, then the:
A) Cyclically-adjusted deficit and the actual deficit would both increase
B) Cyclically-adjusted deficit and the actual deficit would both decrease
C) Cyclically-adjusted deficit would stay the same while the actual deficit would increase
D) Cyclically-adjusted deficit would increase while the actual deficit would stay the same
Correct Answer:
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