When the U

question 81

Multiple Choice

When the U.S.economy reached full employment in 2007, the cyclically adjusted deficit that year was âˆ'1.3 percent of GDP.From this information, we know that the

• A)actual budget deficit must have been very close to 0 percent of GDP.
• B)government implemented a contractionary fiscal policy that year.
• C)actual budget deficit must have been very close to âˆ'1.3 percent of GDP.
• D)government implemented a more expansionary fiscal policy from 2006 to 2007.

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