The Cyclically Adjusted Surplus as a Percentage of GDP Is

question 222

Multiple Choice

The cyclically adjusted surplus as a percentage of GDP is 1 percent in Year 1.This surplus becomes a deficit of 2 percent of GDP in Year 2.It can be concluded that from Year 1 to Year 2,

• A)fiscal policy turned more expansionary.
• B)fiscal policy turned more contractionary.
• C)GDP increased.
• D)GDP decreased.

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Definitions:

Erosion Prevention

Methods and practices aimed at stopping soil erosion to protect land and water resources, often involving vegetation or structural solutions.

Strong Property Rights

The legal protection and enforcement of individuals' rights to own, use, and transfer property, considered essential for economic development and innovation.

Low Birthrates

The situation in which the number of live births per 1,000 people in a population is lower than usual, indicating a decline in fertility.

Potential Soldiers

Individuals who are eligible and might be considered for military service in the event of a need or draft.