If the cyclically-adjusted budget deficit goes from 2% to 1% of GDP, then it indicates that fiscal policy has turned more contractionary.

Name: If the cyclically-adjusted budget deficit goes from 2% to 1% of GDP, then it indicates that fiscal policy has turned more contractionary.
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Question

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A decrease in the cyclically-adjusted budget deficit suggests that the government is reducing its spending or increasing taxes, which are contractionary fiscal measures.

If the Cyclically-Adjusted Budget Deficit Goes from 2% to 1