The Data Below Provides the Actual and Structural Budget Deficits,as

question 7

Multiple Choice

The data below provides the Actual and Structural Budget Deficits,as a percentage of real GDP,for Canada between 1999 and 2010.Note that a negative value in the table indicates a budget surplus. TABLE 31-2 Refer to Table 31-2.Based on the data in the table,over which of the following intervals was fiscal policy expansionary?

• A)1999-2003 because the structural budget deficit is falling
• B)1999-2003 because the structural budget deficit is rising
• C)2008-2010 because the actual deficit is greater than zero
• D)2004-2007 because the structural budget deficit is fairly stable

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