Examlex
Which of the following contributed to the United States going to war in 1812?
Crowding Out
A situation in which increased government spending leads to a reduction in private sector spending and investment.
Contractionary Gap
A situation where an economy's real GDP is lower than its potential GDP, indicating underutilization of resources.
Cyclically Balanced
An economic situation where fiscal policy is designed to be neutral over the business cycle, allowing for temporary deficits or surpluses but aiming for a long-term balance.
Federal Deficits
The financial situation in which a government's expenditures exceed its revenues within a given fiscal year, leading to borrowing or the issuance of debt.
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