In Year 1, the Full-Employment Budget Showed a Deficit of $100

question 36

Essay

In Year 1, the full-employment budget showed a deficit of $100 billion and the actual budget showed a deficit of $125 billion.In Year 2, the full employment budget showed a deficit of $100 billion and the actual budget showed a deficit of $150 billion.Based on the data, what can be concluded about the direction of fiscal policy and the performance of the economy between Years 1 and 2?

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Definitions:

Decline

A gradual decrease in quality, quantity, or significance of something, such as economic performance, population numbers, or social values.

Global Warming

Global warming is the long-term rise in Earth's average surface temperature due to human activities, especially the emission of greenhouse gases, leading to climate change impacts.

Dangers Information

Information regarding potential threats or risks that can affect individual or public safety, health, and well-being.

Profit

The financial gain achieved when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operation.